Our Loans

Which product is right for me?

Product	Features	Amounts	Typical Interest		More Information
Starter Loan	Make a fresh start. Doesn’t require a savings history. We require you to commit to save along side this product.	Up to £500	Ask for details		Find out more or Information Video
Child Benefit Loans	Child benefit is paid directly in to Credit Union Account Doesn’t require a savings history	Up to £850	3.00% per month (Representative APR 42.6%)		Find out More or Information Video
Payroll Plus Loan	Require a good credit history. Only available to members who work with a registered employer . Doesn’t require a savings history	Between £3000 to £7000	Representative APR 9.9%		Find out more
Payroll Loan	Doesn’t require a savings history Only available to members who work with a registered employer Maximum repayment period up to 5 years	Up to £5,000	1.50% – 2.00% per month (Representative APR 19.6% – 26.8%)		Find out more
Saver Loan	For members who have been with us at least 3 months with a regular savings record Maximum term 5 years	Up to £7,500 calculated as 4x share balance	1.50% – 2.00% per month (Representative APR 19.6% – 26.8%)		Information Video
Secured Loan	Loan based on savings held with the Credit Union Can only withdraw savings up to the amount provided as security for the loan	Up to £7,500	0.75% per month
Car Loan	Must have a savings history with the Credit Union Requires an excellent credit history	£3,000 to £7,000 above shares	1.50% – 2.00% per month (Representative APR 19.6% – 26.8%)

This summary is for illustrative purposes only, so as to give you, the borrower, an overview of the potential cost of borrowing. All loan decisions and actual rates are dependent upon personal circumstances. Ask for a personalised illustration. Loan products may be withdrawn at any time and are subject to availability at the time of application

How do I apply?

The quickest and easiest way to apply for one of our Loans is to download the Nivo app from your app store, select Stockport Credit Union as your provider and follow instructions. Nivo utilizes open banking so often we are able to identify you and access the information we need much faster.

As a social enterprise owned by its members, we can offer affordable loans that have our members’ interests at heart. As a co-operative working for the members, we can be more flexible than a bank in deciding whether to lend.

All loans offered are subject to status and eligibility criteria, including an affordability check and credit references. The interest rates offered will depend on your own circumstances, and high value loans may require higher credit ratings.

While you have a credit union loan, you must continue to pay at least £1 weekly or £5 monthly into your savings.

Benefits of a Stockport Credit Union Loan

• Interest is calculated daily on your reducing balance
• You can pay off your loan early or make extra payments without penalties
• There are no set up or administration fees
• You can save at the same time as repaying a loan
• You can repay by Standing Order, Cash or Cheque, and if you have a Payroll Loan you can repay it directly from your salary
• You can repay weekly, fortnightly, 4-weekly or monthly
• Grow your savings at the same time as having a loan, work towards financial independence

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:

If you have any questions about the forms we’d be happy to speak to you. Just Contact Us.

Special Rules for Saver Loans

Please read the following carefully. If you are applying for other loans the rules are different.

• You must be a member of Stockport Credit Union and aged 18 or over.
• If you are applying for your first Saver Loan you must have saved regularly for at least 3 months.
• You can apply for up to four times the amount of your savings, to a maximum of £7,500 more than you have saved.
• Loans for annual expenses (including Christmas expenses) should be repaid within a year.
• Additional ‘top-up’ loans cannot be applied for within three months of the last loan except in exceptional circumstances.
• If a member’s current loan is in arrears a new loan will not be considered until the arrears have been cleared and regular savings resumed.
• All loans are made at the discretion of the Lending Services team which will look at a member’s circumstances and their savings and repayment history with the credit union when considering an application.
• The Credit Committee, which is part of the Lending Services team and who are elected at the AGM,  has the ability to make emergency loans to members in distress.
• You can appeal in writing to the Credit Committee if you disagree with a Lending Services team member’s decision or to the Board of Directors in writing if you disagree with a Credit Committee’s loan decision.
• Loans normally take up to seven working days to approve, although often it will be faster than this. It may take longer in busier periods such as Christmas.
• Any savings in a Share 1 account are ‘locked’ whilst any loan is in place.
• Loans are paid out by faster payment to a bank account.

Repaying your loan

You must keep to your agreed repayment plan and continue to pay into your savings at the same time.

If you run into difficulties with your loan repayments, don’t ignore the problem but get in touch with us. We will listen sympathetically and positively to any difficulties that you are having. We may be able to reduce your payments or suspend them until your circumstances improve – but we can only help if you get in touch.

Consequences of not repaying your loan

Stockport Credit Union works best when members repay their loans on time and according to their loan agreement. It costs us additional resources to remind members and follow up non-payment and this has an effect on the service that we are able to offer other members.

• If you miss payments you may pay extra interest because interest is charged daily on the balance that you have outstanding.
• If we have to write to you a third time regarding arrears, we will charge £5.00 to your loan account.
• We can apply to the Department of Work and Pensions to make deductions from your benefits to repay your loan.
• We can take you to court and apply for a County Court Judgment and an Attachment of Earnings order that will instruct your employer to deduct repayments direct from your salary.
• You may not be able to borrow again from Stockport Credit Union again or if we do decide to lend to you, it may be at a higher interest rate to reflect your poor or irregular repayment history.
• We share your repayment history with a credit reference agency and this may affect your ability to get credit in the future from other lenders.