Loan Policy

"The guidelines for loan applications"

1. Members must be eighteen years of age and over, have been a member for twelve weeks or more, and have saved regularly before applying for a loan.
   
   
2. Application for loans must be made in writing and on the appropriate form. Loan applications must be submitted not less than 21 days before loan is required.
   
   
3. All loan applications will be subject to Credit Committee approval.
   
   
4. First loan is four times member's shares and repayable over a maximum period of one year. Second and subsequent unsecured loans are four times member's shares up to a maximum of £15,000 and repayable over a maximum period of three years (if version 2 status is granted then this will be a four-year repayable period). Second and subsequent secured loans - maximum loan repayment period of seven years.
   
   
5. Maximum interest payable on loans is 1.5% per month (19.6% APR).
   
   
6. Loans totally secured by shares will be paid out within a 48-hour period.
   
   
7. Application for a refinanced loan (top up) will not be considered unless 50% of the existing loan has been repaid.
   A refinanced loan must be fully repaid before a further loan will be considered.
   
   
8. The decision of the Credit Committee on the granting of loans shall be final but member has recourse through the complaints procedure.
   
   
9. Where a loan application is refused or altered by the Credit Committee the member shall be notified in writing.
   
   
10. Emergency loans will be considered on merit by the Credit Committee or the Executive Committee of the Board of Directors.
    
    
11. All loans are subject to funds being available.
    
    
12. This policy will be subject to change. Any changes will be notified to members.
    
    
13. All loans passed will be made available for Supervisory Inspection.

Loans

All monies to be paid to members will be paid by cheque or directly into bank accounts if requested.

Shares

Members applying for share withdrawals must do so on the appropriate form.

Any member with existing loan balance will not be granted a share withdrawal if the loan balance exceeds the share balance, except in emergency circumstances where BOD/Supervisory Committee gives approval.

Share withdrawal procedure as loan procedure (above).

Members may hold a share value up to 1.5% of the Credit Union total share holdings.