How do I borrow from a credit union?
Credit unions exist solely to serve their members. This means that members can access loans at reasonable rates. Only members can apply for loans, and applicants are encouraged to continue saving even when repaying a loan. This not only helps build up the member's own savings but also contributes to the credit unions' savings pool enabling them to grant loans to more members within the community.
Benefits of borrowing from a credit union:
- There is no minimum amount you can borrow and repayments are tailored to suit individuals.
No additional charges are applied if your loan is repaid early – in fact it will save you some interest.- No arrangements fees are levied.
- All loans come with free insurance. If you do not live for the duration of the loan your debt will be automatically cleared, subject to certain conditions - Click on insurance protection for further information.
- Each loan application is assessed on it own merits.
- By law the maximum interest rate is 2% per month levied on the reducing balance. This is equivalent to a 26.8% annual rate of interest. Lower interest rates apply for loans of £1,500 and above.
- By encouraging members to save whilst repaying their loan, the member will have more savings when the loan is cleared.
Quote from a recent market survey carried out by Beaufort Research, Cardiff:
"That's what I like about it. They encourage you to save whilst you pay back your loan. You're not just borrowing more and more and getting more into debt, you have to save as well!"
Loan Amount |
52 x Weekly Repayments |
Protection Insurance |
Total Repayment |
Cost of Loan |
£100 |
£2.17 |
Free |
£112.69 |
£12.69 |
£300 |
£6.51 |
Free |
£338.08 |
£38.08 |
£500 |
£10.84 |
Free |
£563.53 |
£63.53 |
£1,000 |
£21.68 |
Free |
£1,127.06 |
£127.06 |
£2,000 |
£40.86 |
Free |
£2,124.70 |
£124.70 |
£5,000 |
£102.15 |
Free |
£5,311.76 |
£311.76 |
£7,500 |
£150.65 |
Free |
£7,833.30 |
£333.30 |
Small loans up to £1500 are charged at 2% per month, typical APR 26.8%
Loans from £1501 to £5,000 are charged at 1% per month, typical APR 12.7%
Loans from £5001 to £10,00 are charged at 0.72% per month, typical APR 8.9%
Even Lower Rates on Secured Loans
Our Credit Union can now offer lower interest rates on loans fully secured by your credit union savings. Think of the advantages
- Your savings will continue to earn an annual dividend.
- Your savings will attract our normal life insurance cover.
- You can also withdraw your savings up to any amount less your loan balance.
- For example if your savings are £5,000 and your loan balance is £3,000, you can withdraw £2,000.
- No complicated forms to complete
- You have the flexibility of using the loan on whatever you choose and at the same time continue to support your Credit Union.
Loan Amount |
Monthly Repayments |
APR * |
Term (months) |
£1000 |
£47.08 |
12.7% |
24 |
£1500 |
£66.49 |
6.2% |
24 |
£5000 |
£96.67 |
6.2% |
60 |
*Subject to change, please check with the credit union
FAQ's
Consideration of your application for a loan is based upon your character and financial ability to repay. If you are already a member, your savings and any previous loan record will also be taken into consideration.
Top up loans are available but will need to be discussed with a Credit Union official beforehand.
The maximum loan currently allowed is £10,000 above your share (savings) holding. Variable interest rates from as little as 6.2%APR (dependant upon the amount of loan) on a decreasing balance each day with no penalties for early repayment and no arrangement fees contribute to an excellent service available to members. If you took a loan with us today and repaid it back in full tomorrow, all you would pay is 1 days interest.
You do not have to take out a loan to be a member of Llandudno & District Credit Union.
Step 1
Collect a loan application form from our Credit Union office or any collection point. Alternatively download a form from this site, click on "Downloadable forms" and then "Loan Application" from the menu in the left column.
Step 2
Complete the application form as far as you can then take it, along with proof of income to the office or any collection point for discussion with a credit union official. We will answer any queries you may have.
Step 3
Your eligibility to apply for a loan is assessed on your character and financial ability to repay
Step 4
Your application will then be considered by members of the Loans Panel who will make a decision. Each application is considered on its own merits and reasons for refusal will be discussed confidentially with the membe in person.