Loans

PCS Credit Union offers members several different types of loans, which differ to the majority of lenders as there are no fees or penalties for repaying early. Also interest is charged on a daily basis.

  • Ethical payday loans: up to £750 for a maximum period of 12 months.
  • Standard loans: £751 to £4,999 for a maximum period of 5 years.
  • Large loans: £5,000 - £10,000 for a maximum period of 5 years.
  • Debt consolidation loans: up to £5,000 for a maximum period of 5 years.
  • Revolving Credit: £300 to £2,000 for a maximum period of 36 months.
  • Secured Loans: £3,000 to £19,000 for a maximum period of 5 years.

Coming later in 2017:

  • Child Benefit Loans: £750 - £1,500 for 1 to 2 years.

If you have any further questions please contact the credit union office.


Christmas Cheer 

The Credit Union is offering a Christmas Gift to eligible members.
From 1 November to 31 December 2017
Standard Loan Rate is being reduced from 2% per month to 1.25% per month for all loan applications received (with the supporting paperwork) before the end of December 2017.
Ethical Pay Day Loan Rate is being reduced from 3% per month to 2% per month for all loan applications received (with the supporting paperwork) before the end of December 2017

 General Information for ALL types of loan

How do I know how much I will need to repay each month? An example breakdown of the repayments that would be due on a loan can be obtained by using the Loans calculator on the Internet Banking portal or can be requested from the credit union team. However please note these estimated amounts are liable to fluctuate slightly depending at what point during the month the loan is issued.

Do I have to complete all parts of the application form? Yes, if relevant sections of the form are not completed then this could result in delaying the assessment and approval of your loan application. The details on the form and supporting documents help the credit union to assess your ability to repay your loan as part of being a responsible lender.

Does any other information need to be submitted with my application form?

The requirements differ for each type of loan but you will always have to submit at least send your last month’s bank statement, proving the out-goings from your bank account. You will also be required to send at least your last month’s payslip detailing your income. Please see the application form for the specific requirements of your chosen product.

If your bank statement shows deposits to other bank accounts we will also normally require statements for those.

 If you receive your bank statements or payslips electronically, we will usually accept PDF versions of either of these as electronic files or in print form. We cannot accept screen shots of current transactions; it must be a full statement showing your address.

Should these documents not show your permanent home address, you would need to provide us with current documentation, which does, such as benefit book, rent book, utility bill or other similar official documentation. These must be originals for verification purposes; photo-copies will not be accepted. We will take copies for our files before returning any original documents

I am worried about sending original documents

It is suggested that original documents are sent by Royal Mail Recorded or Special Delivery so that delivery can be tracked and a signature is required as proof of delivery.

What information is used to assess my loan? All of the information that you provide will help us assess your ability to repay the loan along with the interest. If we feel that you cannot repay the amount of the loan you have applied for, we may offer a loan of a smaller amount.

Am I guaranteed the loan? No, loans are discretionary and the PCS Credit Union can refuse to grant a loan, defer granting a loan or limit the size of a loan in the following circumstances; if funds are not available or if there is reasonable doubt about the member’s ability to repay the loan.

When will I get my loan payment? The credit union team aim to give you the decision on your loan application within 10 working days of receipt of a fully completed application form with supporting documents. The next step is for you to sign and return a loan agreement form agreeing to the terms of the loan. Once this is received, the credit union team then aim to make your loan payment within 2 working days. Wherever possible we will try to arrange your loan by the date you have requested however this can depend on individual circumstances.

Payment of loans is made directly to the members account by BACS transfer, which can take up to 4 days to be received.

What happens if my loan is urgent?  If you tell us that your loan is urgent and the reason why, we will aim to process the loan as quickly as possible, dependent on individual circumstances.

What happens if I do have problems paying back my loan? We can help. If you have any difficulty in repaying your loan please talk to us as soon as possible. We will always try to help members experiencing difficulty. If you ignore the problem it could have serious consequences as we will try to recover the monies owed to us. We have a responsibility to other members to ensure we act sensibly to keep their money safe. You should also remember that if you are experiencing problems in meeting your loan repayments then the interest owed will continue to grow whilst you are not making payments and any additional transaction charges incurred where you are considered to be at fault will be passed on.

What happens to my savings? You will not be able to withdraw your savings until your savings balance is higher than the outstanding loan amount with interest or if the loan has been paid in full. You can withdraw savings that are in excess of the outstanding balance on your loan. If you have a monthly savings account you will still be required to save the minimum amount of £5 per month whilst you are paying back your loan.

Do I have to sign a loan agreement? Yes, if your loan is agreed, you will then be sent a loan agreement. You must sign and return this loan agreement before any money can be released to you. Please note that any delay in returning the loan agreement could slightly affect the amount of the monthly repayment.

What happens if I change my mind about taking the loan? Once the loan has been granted, you have a 14 day cooling off period to decide if you want to accept the loan you have just taken. You will need to write to us to let us know you wish to cancel your loan. We will then confirm receipt of your communication within 5 working days of receipt. Should you not receive this confirmation within this time scale then please contact PCS Credit Union HQ.

If I change my mind about the loan will it cost me money? If your loan is cancelled within the 14 day cooling off period then no interest or penalties will be charged. Should you decide to cancel the loan; the cancellation will not take effect until the full amount is returned to the credit union. If you decide to cancel your loan after the 14 day cooling off period has passed you will be required to pay interest on the loan amount. The amount of interest charged will be the same amount as would have been charged under the loan agreement. No penalties will be charged.

What searches will you undertake? PCS Credit Union has to ensure it acts responsibly to all of its members. To do so we have to ensure we protect members’ money, act sensibly when lending and avoid bad debt. When you apply to us to open an account or apply for Credit, PCS Credit Union will check the following records about you:

a) Our own;
b) Those at credit reference agencies (CRAs). When CRAs receive a search from us they will place a search footprint on your credit file that may be seen by other lenders. They supply to us both public (including
the electoral register) and shared credit and fraud prevention information.
We will make checks such as; assessing this application for credit and verifying identities to prevent and detect crime and money laundering. If you give us false or inaccurate information and we suspect or identify fraud we will record this and may also pass this information to Fraud Protection Agencies and other organisations involved in crime and fraud prevention. If you borrow from us and do not make the payments that you owe us, we will trace your whereabouts and recover debts. Please remember that if your circumstances change you should contact us as we will always try to help members experiencing difficulty.

Ethical payday loans

Who can apply for a loan? These loans are available to PCS Credit Union members who have been saving for a minimum period of 1 month. If you have deposited a lump sum payment, this will need to be in your account for one full calendar month before it can be considered as a basis for a loan.

How much can I borrow? Members will be able to borrow up to £750.

What rate of interest is charged on the loan? An interest rate of 3% per month (APR 42%) has been set which is chargeable on the reducing balance of the loan.

What is the loan repayment term? A maximum term of 12 months is available. Repayments can be made monthly on a flexible basis; that is equally over the loan term.

Ethical Payday Loan Application Form 26.03.15

All application forms must be submitted with an original signature.  Please download and complete the forms, which can then be submitted electronically if applicable.

Ethical Payday Loan Application Notes & Data Protection Guide 23.03.16

Standard loans

Who can apply for a loan? Loans are available to PCS Credit Union members who have been saving for a minimum period of 3 months consecutively. If you are a new member and have deposited a lump sum payment during your first three months of membership, this will need to be in your account for at least three months before it can be considered as a basis for a loan. For members, who have been saving for longer than three months consecutively, any lump sum deposits must be in your account for one full calendar month.

How much can I borrow? Members are able to borrow from £750 up to £4,999. A maximum of 5 times the amount of savings is applied. Any specific reason for the Committee’s consideration should be detailed on the application form.

What rate of interest is charged on the loan? An interest rate of 2% per month (APR 26.4%) has been set which is chargeable on the reducing balance of the loan. No arrangement fees are charged on loans and there are no penalties for repaying a loan early. For example £1,000 taken over a 1 year period would cost approximately £100 in interest.
NB : From 1st October 2017 this rose from 1.5% per month (APR 19.6%)

Loan terms Loan terms of up to 5 years, will be considered on an individual basis.

Standard Loan Application Form 26.03.15

All application forms must be submitted with an original signature.  Please download and complete the forms, which can then be submitted electronically if applicable.

Standard Loan Application Notes & Data Protection Guide 23.03.16

Large loans

Who can apply for a loan? Large loans are available to all PCS Credit Union Adult members. If a member has not commenced saving with the credit union or does not have sufficient savings, a deposit of 10% of the loan value will be required. You will also need to be a homeowner or tenant at the same address for at least the last three years, as well as have an excellent credit history for at least the last two years. Any missed payments, defaults or judgements may be queried by the loans officer.

All large loans will be granted at the discretion of the Credit Control Committee. Please note loans for debt consolidation purposes will not  be considered. If a loan application is refused the Committee reserve the right to offer an alternative product at a higher rate of interest.

How much can I borrow?  Members will be able to borrow up to 10 times the amount they have saved provided the total loan value is between £5,000 - £10,000.

What rate of interest is charged on the loan?  An interest rate of 0.4% per month (APR 5%) has been set which is chargeable on the reducing balance of the loan. No arrangement fees are charged on loans. For example £5,000 borrowed over 2 years would cost approximately £259 in interest.

What is the loan repayment term? Loan repayment terms of between 1 – 5 years are available.

Do any other terms or conditions apply? PCS Credit Union is unable to offer insurance on large loans. Therefore should the borrower die during the term of the loan, we reserve the right to make a claim on the Borrower's estate to recover any amount outstanding on the loan.

Large Loan Application Form 26.03.15

All application forms must be submitted with an original signature.  Please download and complete the forms, which can then be submitted electronically if applicable.

Large Loan Application Notes & Data Protection Guide 23.03.16

Debt Consolidation Loan

Who can apply for a loan? Loans are available to PCS Credit Union members who have been saving for a minimum period of 3 months consecutively. If you are a new member and have deposited a lump sum payment during your first three months of membership, this will need to be in your account for at least three months before it can be considered as a basis for a loan.

How much can I borrow? Members may apply to borrow a maximum of 5 times their amount of savings, up to a maximum of £5,000. Any specific reason for the Committee’s consideration should be detailed on the application form.

What rate of interest is charged on the loan? An interest rate of 2.5% per month (APR 34.5%) has been set which is chargeable on the reducing balance of the loan. No arrangement fees are charged on loans and there are no penalties for repaying a loan early. For example £1,000 taken over a 1 year period would cost approximately £200 in interest.

Loan terms Loan terms of up to 5 years, will be considered on an individual basis.

Debt Consolidation Loan Application Form Nov 2016

All application forms must be submitted with an original signature.  Please download and complete the forms, which can then be submitted electronically if applicable.

Debt Consolidation Loan Application Notes & Data Protection Guide Nov 2016

Revolving Credit

Who can apply for a loan? Loans are available to PCS Credit Union members who have been saving for a minimum period of 6 months consecutively. If you are a new member and have deposited a lump sum payment during your first six months of membership, this will need to be in your account for at least six months before it can be considered as a basis for a loan.

How much can I borrow? Members are able to borrow from £300 up to £2,000. A maximum of 5 times the amount of savings is applied. Any specific reason for the Committee’s consideration should be detailed on the application form.

What rate of interest is charged on the loan? An interest rate of 3% per month (APR 42.6%) has been set which is chargeable on the reducing balance of the loan. No arrangement fees are charged on loans and there are no penalties for repaying a loan early. For example £1,000 taken over a 1 year period would cost approximately £200 in interest.

Loan terms Loan terms of up to 36 months, will be considered on an individual basis.

All application forms must be submitted with an original signature.  Please download and complete the forms, which can then be submitted electronically if applicable.
 

Secured loans

Who can apply for a loan? Loans are available to PCS Credit Union members who have been saving for a minimum period of 1 month. If you have deposited a lump sum payment during your first  month of membership, this will need to be in your account for at least three months before it can be considered as a basis for a loan. For members, who have been saving for longer than three months consecutively, any lump sum deposits must be in your account for one full calendar month.

How much can I borrow? Members may borrow a maximum amount equal to their savings held with the Credit Union, from £3,000 up to £19,000.

What rate of interest is charged on the loan? An interest rate of 0.25% per month (APR 2.99%) has been set which is chargeable on the reducing balance of the loan. No arrangement fees are charged on loans and there are no penalties for repaying a loan early. For example £1,000 taken over a 1 year period would cost approximately £16 in interest.

Loan terms Loan terms of up to 5 years, will be considered on an individual basis.

All application forms must be submitted with an original signature.  Please download and complete the forms, which can then be submitted electronically if applicable.

 

Loan application documentation

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