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Members of the Credit union who are of full age – 18 years – may apply for a loan for a provident or productive purpose. All loans are provided from the savings of other members.
We can take an application at any time during opening hours, either in the office or by phone, however the application may have to wait for approval until the following Tuesday afternoon.
Members registered on the website may also submit a loan application online. However, please allow 24 hours for the application to be received in the office - applications must be submitted by Monday to reach the Credit Committee by Tuesday's meeting.
A member's first loan is limited to twice the main share balance, building to three times shares when a good credit record has been established. Loans outside these limits will be considered by producing up to date pay slips and bank statements. The maximum loan offered is £18,000. This limit applies to all members of the Credit Union. (This does not mean that a member can demand a maximum loan). Camlin Credit Union’s loan policy allows members to borrow up to the amount of their savings at any time without waiting for Credit Committee approval. Loans outside these limits may be considered by producing up to date pay slips and bank statements.
Members should ensure that repayments are maintained regularly otherwise arrears will occur which may affect the granting of later loans.
A member will normally be expected to establish a regular pattern of savings before applying for a loan. Members with small savings cannot expect to receive large loans.
The following are some of the factors taken into account when considering a loan application- A regular pattern of savings
- The member’s previous loan repayment record
- The purpose of the loan
- The member’s ability to repay as agreed
- Frequency of loan applications
Every loan application receives careful consideration and most loans – over 95% - are granted. However, in the best interests of the Credit Union and indeed of the member concerned, some loans are refused.
It should also be noted that loan applications are considered by the loans committee and counter staff are not involved in such decisions.
Repayment periods can be arranged to suit the member but are usually over 2 or 3 years. Higher value loans may be taken over 4 years, while loans over £10,000 may be considered over 5 years. There are certain loans which are regarded as Annual loans, eg. Holidays, Christmas, Car Tax, Insurance, Rates etc. Such loans should be fully paid within 12 months.
We can arrange weekly, fortnightly, four-weekly or monthly repayments, and payments can be made at the counter, by direct debit or even via on-line banking.
Credit Searches and your Credit Score
Please note that we may carry out an Experian Credit Search for some loan applications. As part of our arrangement with Experian we are required to provide details of performance on all loans. This can actually improve your overall credit score provided you keep up to date with your payments. However, some members may notice a temporary dip in their credit score for the first few months after taking out a new loan until Experian can build up your payment history.
We have no control over how your actual credit score is calculated, so for further information please contact Experian directly.
Promissory Note
Before any loan is paid out, the member and where applicable, the guarantor, is required to sign a PROMISSORY NOTE. This is a legal document whereby the member – and the guarantor – promise to repay the loan and interest at a stated rate of repayment.
Pledged Shares
Where the amount of shares/savings at the time a loan is approved are equal to or less than the loan amount, those shares /savings become pledged as security for the loan and may not be withdrawn.
Repayment Difficulties
There may be times when, for genuine reasons or unexpected circumstances, a member finds difficulty in maintaining the promised repayments. If this happens we can usually renegotiate the terms of the agreement to make payments easier. It is essential that the member contacts the office as soon as difficulties arise. Any delay will make the situation worse and it will become harder to make a new repayment arrangement. Our Credit Control Officers are always available to discuss loan account problems.
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