Need a Loan?

"Loans from the people you can trust"

Do you need a loan?

Manchester Credit Union believes in giving its members the best deal possible and will consider loan applications for any worthwhile purpose. We treat each loan application on its own merits and you can be sure that we treat them in the utmost confidence. We aim to provide loans to as many of our members who need them, depending on the funds we have available.

Applications for loans are made on a standard loan application form. Loan application forms are available from any of our offices or collection points or can be downloaded from our member’s section. On submitting the loan form you should enclose proof of stated income and expenditure in the form of the last 2 or 3 months bank/post office account statements, benefit award letters and/or payslips (if applicable) - click here to enter the member’s section. If you need any assistance with filling in the form, please do contact us and our friendly staff will be happy to help.

Loan applications will be considered by a loan officer. In deciding whether or not to provide a loan, we will take into account your record of savings with the credit union and any previous loan repayments, as well as your ability to repay. Once the loan is agreed, you will be asked to complete a promissory note. This is a legally binding document which is your promise to repay the loan and to commit to regular repayments.

Remember – we can only make loans to members of Manchester Credit Union. Click here to find out about becoming a member.

Planning and managing repayments

Manchester Credit Union tries to be flexible with repayment plans, though there are some legal limitations to the length and amount of a loan. We will come up with the best repayment plan to meet your circumstances, but members are generally advised to repay a loan in as short a time as possible. Currently the maximum loan term for an unsecured loan is five years and it is 10 years if the loan is secured.

If you experience difficulties in meeting repayments, you should immediately contact us and explain the situation, so that we can treat the matter sympathetically and in total confidence. Depending on your circumstances, the loan will be renegotiated if possible.

Unlike with many other loan providers there are no penalties associated with clearing your loan quicker than agreed, or for paying more than the standard monthly repayment. In fact, the sooner you are able to pay off your loan, the more interest you will save!

Interest on credit union loans

The interest you pay will depend on your requirements, such as the amount of the loan and how quickly you repay it. Most loans are made at a flat rate of either 1% or 2% per month on the reducing balance of the loan, which represents an APR (Annual Percentage Rate) of just 12.68% or 26.8%. Others are shown below. By law credit unions cannot charge more than 2% per month (26.8% APR). Since interest is only charged on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned.

Loan Amount	Monthly Interest Rate	%APR
£1 - £1,999	2%	26.8%
£2,000 - £4,999	1.5%	19.56%
£5,000 - £6,999	1%	12.68%
£7,000 +		8.5%

Credit unions do not charge loan arrangement fees or transaction charges.