Local families can now borrow up to £500 with a Family 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 Family 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.
Loans are subject to an interview to assess affordability and we are unable to offer our Family Loan to anyone who is currently bankrupt, in a DRO, IVA or Debt Management Plan. We are also unable to lend if you have unaddressed CCJs or have defaulted on current credit in the last 12 months.
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 Family Loan:
"I would 100% recommend Norwich Credit Union's Family 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 Family 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 Family 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.
"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."
Family Loan benefits - at a glance