About the Child Benefit Loan
We know that unexpected costs are unavoidable and often seem to come at the very worst time. That’s why we offer our Child Benefit Loan to help you when you need it most and also, to start you on a journey of planning for the future with a small savings plan.
The loan repayments are facilitated by your Child Benefit payment, this means that when you apply for the loan you agree to Stockport Credit Union being in receipt of your Child Benefit Payment. We will debit the loan repayment and a savings contribution and we will send the rest of your Child Benefit payment back to your bank account on the same day we receive it. Working in this way means that we may be able to help you if you have struggled to get credit in the past.
Our Child Benefit Loan is a really good way to help you manage your money and build up a savings habit. You can apply for a loan of up to £850 and you don’t have to have a savings history with us already.
Here’s an example
One of our Loan Officers will have a chat with you about how much you feel you can afford to save alongside the loan. In the above example, the loan repayment is £36.92 per month. The member could opt to round the figure up to £45 a month. This means that when the loan is finished the member will have a savings pot of £48.48p available. The member may choose to leave the money in and continue to save or they may decide to withdraw it. It’s important to be realistic about how much you can save because the money will be locked until the loan is repaid.
How to apply & next steps
The quickest and easiest way to apply for our Child Benefit Loan is to download our Nivo app and follow the simple steps. Our app utilizes open banking so often takes the fuss out of providing bank statements and identifying you. Download “Nivo” from your app store or scan the QR code to begin your application.
If your application is accepted you must contact the child benefit office to tell them we have agreed to a Child Benefit Loan and get a reference number. Don’t worry, we will talk you through this bit.
Once we get the correct information required, we will send a digital Loan agreement for you to sign. When you have digitally signed the agreement and we receive this back, the loan funds will be deposited into your Bank account.
As long as you provided us with the information we need promptly, we aim to complete your application with 24/48 working hours.
Terms and Conditions of the Child Benefit Loan
Applicants must be in receipt of a Child Benefit payment to qualify for this product.
Applicant must agree to have the whole amount of their Child Benefit payment paid to Stockport Credit Union until the term of the loan has ended or the loan has been repaid. Any surplus will be credited back to the applicant’s bank account the same day we receive it.
We will do an affordability check to ensure that the loan is affordable for the member.
Applicants must be 18 years old or over.
Credit criteria applies, we will perform a credit check on the member.
Savings will be locked into your Share One account until the loan is repaid. We reserve the right to off-set any Share One savings balance against loan arrears.
How does the interest work?
Interest on loans is charged monthly on the declining balance.
For example, suppose that you borrow £100 from us at 2%. At the end of the first month we will add 2% interest (i.e. £2) and you will owe us £102. If you pay off your loan at £10 per month, at the end of the second month you will owe us £92. We will then add interest on that at 2% (£1.84); and so on.
You may be offered a different interest rate based on your personal circumstances or previous repayment history.
Do you use credit reference agencies?
We may carry out a check with a credit reference agency and share information with them as long as you hold products with us. If you would like to know more about how we use your information please download the guide below:What happens to my data?
If you have any questions about the forms we’d be happy to speak to you. Just Contact Us.