NORWICH CREDIT UNION

Child Benefit Loan

Local families can now borrow up to £500 instantly with a NEW Child Benefit Loan from Norwich Credit Union.

Previously, credit union member had to save for 3 months first before applying for a loan. But now parents and carers needing funds in a hurry can apply immediately for a maximum Child Benefit Loan of £500. It allows families to pay for a big ticket item, such as a new washing machine or rent deposit, at a much lower rate of interest than other types of instant credit (click the below link to see price comparison table).

All applicants who meet the credit union's eligibility criteria must agree to have their Child Benefit paid directly into their new account; the credit union will then deduct the loan repayments. The member can choose to have any remaining balance loaded onto a convenient Allpay cash card or added to their NCU savings account.

Charlotte Crowe needed cash to secure a flat for her family in Norwich. She was able to pay the landlord the rent deposit immediately by arranging a Child Benefit Loan:

"I would 100% recommend Norwich Credit Union's Child Benefit Loan to anyone who is struggling to find money urgently."

"We would have been homeless without the credit union's help. They took a chance on me at a time when I really needed help... I have this flat now, and in a year I will have paid off my loan. I'm paying £15 off each week, and the other £5 is going into my savings account."

NCU President Jon Warne explains:

"The Child Benefit Loan is an ethical way of making Child Benefit go further. We will interview everyone who applies; if successful, they must first become an NCU member and then authorise payment of their Child Benefit into their new account. We'll do the rest."

Norwich Credit Union's Child Benefit Loan has a fixed interest rate of 3% per month (42.6% APR) on the reducing loan balance. Free life insurance is included and there are no set-up or early repayment fees.

Jon continues:

"Our experience is that often, once a member has repaid their loan, they get into the habit of saving and borrowing with the credit union. We also offer junior savings accounts for children and young people up to the age of 18."

Child Benefit Loan benefits - at a glance

  • Borrow up to £ 500
  • Fixed loan interest rate - 3% per month on the reducing balance (42.6% APR)
  • Repayments made straight from Child Benefit
  • The quicker the member repays, the less interest they pay
  • No hidden fees, charges or repayment penalties
  • Free life insurance (terms and conditions apply)
  • Encourages a savings habit
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    Terms and Conditions

    Child Benefit Loan - terms and conditions

    1. To apply for an instant Child Benefit Loan, applicants MUST attend an interview to check they can afford to repay the loan. If successful, they need to join Norwich Credit Union (see eligibility critera below) and organise to have their Child Benefit paid directly into their credit union account.

    2. Membership costs £1 and is open to any individual receiving Child Benefit who lives, works or studies anywhere within the county of Norfolk or in an NR postcode area. This covers the postal areas NR1 to NR35, PE14, PE30 to PE38, IP20 to IP22 and IP24 to IP27.

    3. Members can apply for the CHild Benefit Loan on the same day they join - subject to affordability checks and by appointment only - see above.

    4. To be eligible, members MUST telpehone the DWP (0300 200 3100) from Norwich Credit Union's office and authorise payment of their Child Benefit into their credit union account.

    5. As soon as the member's first Child Benefit loan payment has been received, the remaining Child Benefit will be loaded on to an Allpay cash card and available for withdrawal. Alternatively, the member can choose to have some or all of the balance transferred into their credit union savings account.

    6. Norwich Credit Union will charge a fixed loan interest rate of 3% per month (42.6% APR) on the Child Benefit Loan.

    7. The maximum loan repayment term is 12 months.

    8. Members who default on their Child Benefit Loan will be subject to Norwich Credit Union's debt recovery procedures, as outlined in our Policy Manual.

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    Example repayment schedule and comparison table

    Example repayment schedule and comparison table