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Important Information for Members
Members Be Aware
We take defaults very seriously. If you default on your payments,
your details may be passed to credit agencies and you could end up with a CCJ
(County Court Judgement) against you. Failure to make the agreed payments can
affect your credit rating and you may find it difficult to borrow from the
Credit Union or other sources in the future.
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 Loans
Interest is charged at 1% per month. On the reducing balance of the loan the maximum period that loans can be repaid is at present three years, although small loans have to be repaid in a shorter period.
The credit union bases its decisions to grant loans on these main factors:
- That the member has provided full and accurate information about their financial circumstances.
- That there is sufficient ‘disposal income’ to repay the loan, once all household and other bills are paid.
- That the member has maintained regular payments of other loans.
- The member is working or has the ability to repay the loan.
- The member has paid back a third of any previous loan taken out.
- The member has achieved the saving criteria.
Lump sums – can be deposited into savings, but are not taken into account when making decisions about loans. The credit union has to act responsibly by granting loans at a level that the member can afford to repay... Checks are carried out to verify information provided by members. In the case of new members, the credit union has to judge whether members will repay loans in accordance with their loan agreements and therefore requires members to save for a period before being eligible for loans.
Savings and Loan Life Insurance
Member’s savings & loans are covered by our free life insurance policy. In general, every pound saved is matched by a pound of life insurance.
In the event of permanent disability or death, outstanding loans are cleared under the terms of the insurance policy.
Upon the death of a member, Member’s next of kin will receive up to or double the savings, depending on the age of the member.
The amount of members insurance is based on:
a) the insured balance of savings on the date of death and
b) how old the member was on that date as follows:
16-64 years old- The amount of insurance is equal to 100%
65-80 years old- The amount of insurance is equal to 25%
When a conventional financial institution is reluctant or will not lend to those over 65 years of age, your Credit Union WILL. Credit Union members up to the age of 80 can access a Credit Union loan based on their savings and ability to repay the loan.
Interest is charged at 1% per month. The maximum period that loans can be repaid is three years, although small loans have to be repaid in a shorter period.
Kick-start loan
Kick-start loan (first loan only) – The maximum value of this loan is the member’s shares plus £300.
Standard loan
Members of 3 months to 2 years may borrow a maximum of 2x shares (minus any outstanding loan balance) Memmbers of 2 years + may borrow a maximum of 3x shares (minus any outstanding loan balance)
Top up loans
After paying off a third of your loan, you are eligible to apply for a new loan. Repayment schedules will be based on members paying back the full amount (the new loan, plus any outstanding loan balance on the previous loan). For the amount you are eligible to apply for, see the standard loans above.
Examples of repayment
Interest is charged on all Crownsavers’ loans, at a rate of 1% a month on the reduced balance (12.68% APR)
Examples of typical monthly repayments are shown below:
£2000 = £178 per month (over 12 months) or £95 per month (over 24 months)
£1000 = £89 per month (over 12 months) or £48 per month (over 24 months)
The maximum repayment period for a loan is three years. Loans of under £500 are to be paid back within 1 year.
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.)