Norwich Credit Union members can now take advantage of our lowest ever interest rates with a Secured Loan.
If you need to make a purchase but are reluctant to lose your savings safety net, the Secured Loan could be a suitable alternative to a share withdrawal. Interest is charged at just 0.75% a month (9.8% APR). To get this low rate, the amount you borrow is capped at the amount you hold in your credit union account and the loan is secured entirely against those shares. This makes the loan virtually risk-free, as if you encounter difficulties, a share-to-loan transfer will bring your loan balance down to zero.
Why shouldn't I just use my shares?
For many of our members, this would be a suitable option but others may like the idea of keeping their nest-egg intact and borrow at our low rates to acquire their purchase and have their rainy-day fund still there at the end of the loan.
Norwich Credit Union member and Director Danny Thomas said;
"I took advantage of the Half Price Loan to purchase a new computer when my old one packed in. I could have raided my savings but I like the reassurance of having a financial safety net in place to deal with life's unforeseeables. The Half Price Loan enabled me to buy what I needed and I actually increased my safety net by overpaying slightly on my loan repayments. The minimal interest paid was worth it to keep the sense of security having a rainy day fund brings."
For full terms and conditions please read our Policy Manual