Low Cost Loans

Why you shouldn’t go to Doorstep Lenders

Before you turn to doorstep lenders for that emergency loan try Stroud Valleys Credit Union. Compare our rates of interest (see below) with those advertised by the doorstep lenders. Also we have no upfront charges apart from our £2 joining fee and if you wish to pay the loan off early there are no penalties.

Types of loan available to members:-

i) Standard Loan

When members have been saving for a certain period of time (usually about 12 weeks) they can apply for a loan. The amount of the loan will relate to the level of their savings. For instance if the savings are £100 a loan of £200 will be available. Interest on the loan will be charged at only 1 % per month on a monthly reducing balance this equates to an Annual Percentage Rate (APR) of 12 .68 %.

Loan Repayment Interest Table

APR Fixed at 12.68% for repayment over year

Amount of loan given: £100	Total Interest due: £6.56	Total amount due: £106.56	Weekly Repayments: £2.05
Amount of loan given: £300	Total Interest due: £19.80	Total amount due: £319.80	Weekly Repayments: £6.15
Amount of loan given: £1,000	Total Interest due: £66.32	Total amount due: £1066.32	Weekly Repayments: £20.51

ii) Ready Loan

If a member wishes to take out a loan which isn't related to their level of savings they can apply for a Ready Loan. They must have saved for 6 weeks before applying for a loan and the interest charged on the loan is 2% per month on a monthly reducing balance. This equates to an Annual Percentage Rate (APR) of 26.8%.

Loan Repayment Interest Table

APR Fixed at 26.8 % for repayment over a year

Amount of loan given: £100	Total Interest due: £13.12	Total amount due: £113.12	Weekly Repayments: £2.18
Amount of loan given: £300	Total Interest due: £39.36	Total amount due: £339.36	Weekly Repayments: £6.53
Amount of loan given: £600	Total Interest due: £78.72	Total amount due: £678.72	Weekly Repayments: £13.06

Applying for a Loan

You can apply for a loan by calling in at one of our collection points (see ‘how to contact us’ section for locations). There you can pick up a loan application form and fill it in. You can ring for information or to make an appointment on 01453 298785. Or you can download an application form and a check list, (see below).

You will be required to attend an interview for your first loan and we will deliver the loan within 7 days of a successful application.

All applicants are credit checked, but if you have got into difficulties in the past it won’t necessarily stop you having a loan, just give us full details on the application form.

Once a loan is granted you will be required to sign a loan agreement form, which is a legally binding document being a promise to repay the loan on time in full.

Repaying the Loan

The normal period of repayment is one year but Stroud Valleys Credit Union can be flexible with repayment plans.

The usual method of repayment is by Standing Order but in some cases we will allow cash payments at our collection points.

We recommend that in addition to the loan repayment you also put a small amount of money into savings but that is voluntary.

You should always be aware that you are borrowing your fellow member’s money so don’t apply to borrow if you are not completely committed to repaying their trust in you.

Loan application

Download: membership/loans check list

Download: loan application form

Remember, only members can apply for a loan.