Child Benefit Loan

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.

Although your loan repayments are made by your Child Benefit payment we nevertheless have a duty as a responsible lender to ensure that your loan repayments are affordable. In order to do this we always carry out a credit search (if one has not already been made by us within the last six months) and an assessment of affordability when you first apply and in order to assess your affordability you will need to confirm your overall income and outgoings. We will go through the same process on subsequent loan applications.

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 £750 and you don’t have to have a savings history with us already.

Here’s an example

Savings Contribution

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.

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.

How does the interest work?

Interest on loans is charged monthly on the declining balance. This means that 42.6% APR = 3% per month / 26.8% APR = 2% per month. Using an APR helps you compare loans between lenders.

For example, suppose that you borrow £100 from us at 3% per month. At the end of the first month we will add 3% interest (i.e. £3) and you will owe us £103. If you pay off your loan at £10 per month, at the end of the second month you will owe us £93. We will then add interest on that at 3% (£2.79); and so on. 

Do you use credit reference agencies?

Yes, we 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.

Do you use Open Banking?

Stockport Credit Union uses Open Banking to assess your affordability to repay loans.

Open Banking is the secure way of providing access to your bank or building society account to providers who are registered for this purpose. Registered providers and participating banks and building societies are listed under the Open Banking Directory.

Open Banking was set up by the UK Government to encourage more competition and innovation in the financial services sector.

As a forward thinking lender, we support the use of Open Banking as it allows us to process loan applications efficiently, securely and in our consumer’s best interests. By permitting access to your bank or building society account information we are able to make a better lending decision as we shall be able to verify your income, outgoings and other matters in order to assess what loan terms would be suitable for you based upon what you can reasonably afford to repay.

Further information about Open Banking is available from You can find more information on how the information will be processed and retained on Stockport Credit Union’s Privacy Notice on this website.