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Borrowing money
Borrowing money, when done responsibly, can help build or restore a credit rating, make necessary purchases, return to school, start a business or create economic opportunity.
Always look beyond the advertised APR%
With Lewisham Employees Credit Union you are guaranteed:
- A competitive interest rate (everyone pays the same, whatever your credit rating)
- Life cover at no extra cost – savings doubled and loans repaid in the event of death (up to age 65 and subject to conditions)
- Truth-in-lending, with no hidden cost No arrangement fee, no early redemption penalty and no final settlement fee
LOANS SUBJECT TO STATUS, CONDITIONS AND CREDIT CHECKS TO MEMBERS
Borrowing with Crownsavers has many advantages...
- Minimum loan £100, maximum £10,000 or upto £15,000 depending on savings
- Daily interest at competitive fixed rates - no worries about interest rates increasing
- Affordable repayments - to suit you
- No early repayment charges or penalties - clear your loan when you like
- All interest you pay goes back into the Crownsavers coffers to be invested in services or returned to members
- Direct repayment through payroll deduction
Applying for a loan
We consider loan applications from members for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits.
Applications for loans are made on a standard loan application form. You can apply by calling to our office, or through the post. You can also download the loan application form from the website
We will need to confirm your income, and see bank Account statements . Our staff will give you any assistance required. You don't need an appointment - just call in to the office with all the paperwork to support your application, and a completed application form.
What you need when applying for a loan
Loan applications are considered by Credit Committee or Loan Officer o/senior manager and we aim to give you an answer within a maximum of 5 working days from the loan committee day once we've got all the information we need (though we're often quicker than this).
In deciding whether or not to grant the loan the Credit Committee /Loan Officer will take into account your ability to repay the loan, which is subject to a thorough assessment, as well as your past experience of credit and other factors.
Having a regular savings history and a good previous loan repayment history can help.
A percentage of applicants are credit checked, but if you've got into difficulties in the past it won't necessarily stop you having a loan - just give us full details on the application form.
Once a loan is granted you will be asked to sign a loan agreement form, which is a legally binding document being a promise to repay the loan on time and in full.
Don't forget that with Crownsavers you are borrowing your fellow members' money - never apply to borrow if you're not completely committed to repaying their trust in you.
Planning and managing repayments
Crownsaver is flexible with regard to repayment plans, though there are some legal limitations to length and amount of loans.
You will be advised on the best repayment plan to meet your own circumstances.
Members are generally advised to repay a loan in as short a time as possible, and 12 months is usually the maximum term for a first loan of up to £1000, 5 years is currently the maximum loan term possible.
Should you experience difficulties in meeting repayment commitments, you should immediately explain the situation to us, and we will treat the matter sympathetically and in total confidence.
If you don't contact us and don't pay your loan we will take every opportunity open to us to recover members' money - including legal action if necessary.
There are no penalties or early repayment charges if you are able to pay off your loan early.
Interest on credit union loans
By law credit unions cannot charge any more than 2% per month on the reducing balance of a loan. This represents a maximum interest rate of 26.8% APR (Annual Percentage Rate), and that is the most you will ever pay on your loan.
We have various loan products available depending on your circumstances and the amount you are borrowing, and loan interest rates range from 26.8% APR right down to 10.9% APR.
There are NO fees or transaction charges. And since the interest is charged only on the outstanding balance of the loan, you will pay less interest the quicker you repay your loan
All our loans are subject to our Loan Policy and Terms and Conditions.
Financial health check
Do you want to take control of your finances - but not sure where to start?
Do you need a bit of help sorting out your financial priorities online?
The Financial Service Authority (FSA) - free Financial Health Check will give you some tips for a healthier financial lifestyle - now and in the future
It will only take a few minutes. There's no need to dig out bank statements or old insurance policies. Just answer a few simple questions and they will make some suggestions based on what you tell them.
The Financial Healthcheck was developed jointly by the BBC and the FSA, the UK watchdog for the financial services industry
The healthcheck aims to give you some information to help you identify your financial needs and make your financial decisions. It only provides a general guide and you shouldn't take any decisions based solely on your feedback.
Debt test
Loans, credit cards, mortgage payments, bills - are you worried about your finances?
The FSA Debt Test will help you to find out whether you have - or are likely to have problems with your borrowings.
- tell you whether you should worry about how much you borrow;
- give you tips on how to avoid debt problems; and
- help you to tackle your debts should you be in trouble.
Free Loan Protection Insurance
What is Free Loan Protection?
Credit unions provide free life insurance on your credit union loan, one of the unique benefits of credit union membership. This means that in the event of your death, your credit union loan balance is paid off by this insurance so you needn't worry about passing on debt to your next of kin when you die*.
This benefit fulfils one of the credit union movement's unique principles of ensuring that the member's debt dies with them. It is a unique benefit to credit union members and would cost extra money with most other institutions.
What Does Loan Protection Cover?
Loan Protection insurance automatically covers 100% of credit union loans held by members aged between 16 and 80, to a maximum value of £10,000. If your loan amount is higher than £10,000, Loan Protection insurance will cover the first £10,000 of the loan.
When does Loan Protection Not Apply?
Any new loan agreements are subject to a six month Pre-existing Condition Limitation. This means that should you die as a result of a pre-existing medical condition (for which medical advice, consultation or treatment was received), within 6 months of taking out your loan, Loan Protection insurance will not be applied.
Loan Protection Insurance does not cover death due to HIV/Aids, Suicide, Terrorism or War. *Terms and conditions apply
Loan Comparison Chart
Under the Distance Marketing Directive, you have the right to cancel your loan agreement within 14 days of signing, without financial penalty or interest charge, by repaying the loan in full.
Loan comparisons based on a typical personal loan of £4,000 arranged over 36 months (excluding optional payment protection insurance)
| Lender | APR | Monthly Payment | Total Repayable | Saving with PCU |
|---|---|---|---|---|
| CROWNSAVERS | 12.7% | £132.86 | £4,782.96 | – |
| SAINSBURY’S | 13.8% | £134.77 | £4,852 | £70.00 |
| HALIFAX | 22.9% | £150.29 | £5,410 | £628.00 |
| RBS | 16.8% | £139.96 | £5,038 | £256.00 |
| Co-op Bank | 17.9% | £141.78 | £5,103.95 | £321.00 |
| SANTANDER | 15.7% | £138.02 | £4,969 | £186.04 |
LOANS SUBJECT TO STATUS, CONDITIONS AND CREDIT CHECKS TO MEMBERS AGED 18 & OVER
*Competitor information source: Moneysupermarket/ their own website (August2010) Repayment calculations source: Crownsavers Curtains
Useful Documents
Please be reminded that when you take a loan, you are using other members savings. So it is up to you to ensure that you repay your loan, so that others can benefit too!
CROWNSAVERS_LOAN_APPLICATION_AND_AGREEMENT_FORM.pdf
(A 2 part form. Part 1 is the Loan application form, Part 2 is the Loan agreement form, which requires completion to receive monies into your account once a loan application is approved.)