Loan Terms and Conditions

Membership
• Loans will only be granted to credit union members over 18 years of age.
Savings
• It is a condition of Savers Loans that you have been saving regularly for a period before the loan is granted; a poor or erratic savings record may result in your loan application being turned down.
• It is a condition of CURight Loans that you save an amount at least 10% of your loan repayments. With other loans you are encouraged to save at the same time as paying back your loan.
• Some of your shares will be attached to provide security for your loan. This means that you will not be able to withdraw these shares. The value of the shares attached will be stated on the loan agreement.
• Should you default on any repayment of the loan, all of your shares up to the outstanding loan balance will be attached to the loan and you will not be able to withdraw these.

Loans and Repayments
• Details of the loans available are given in our lending policy available from the office or the on the website.
• The maximum loan available is:
• Savers Loan – £5,000 over 60 months
• CURight Loan – £1,000 over 18 months.
• Check with the Credit Union for current maximum loan you can apply for.
• Loans are repaid weekly, fortnightly or monthly over the term agreed in the loan agreement.

Credit Committee
• The Credit Committee, appointed by the members at the Annual General Meeting of the Credit Union, will assess your application and if necessary they may ask for further information and/or an interview.
• The Credit Committee’s decision is final.
• If your application is rejected or if the Committee offer a smaller loan you will be told the reasons.
• Once the Credit Committee have met and agreed the loan, it takes about a week to process.

Payment of the Loan
• Payment of the loan will not be made until you have signed a loan agreement form.
• Payments can be made by Bank Transfer (BACS) or cheque.
• If required the Credit Union will give you an authorisation code to enable you to cash your cheque at certain Post Offices. You will also need to provide some ID when cashing the cheque at the Post Office.

Interest
• Interest is charged daily on the outstanding loan balance.
• For Savers Loans the interest rate is 2% per month (APR 26.82%)
• For SaversPlus Loans the interest rate is 0.4% per month (APR 4.91%)
• For CURight Loans the interest rate is 3% per month (APR 42.58%)
• Interest is calculated upon the reducing balance of your loan. The quicker you are able to repay your loan, the less interest you will be charged. There are no penalty fees for paying off your loan early.

Loan Arrears
• Although the Credit Union will do what it can to assist members who have genuine reasons for falling behind with repayments it should be noted that all legal measures will be taken to recover the loan arrears.
• If your circumstances change, and you have difficulty meeting the repayments of your loan, please contact the Credit Union as quickly as possible. We will try to help our members who have run into difficulties, but it becomes more difficult to help if arrears have been allowed to mount up without contacting us promptly.
• You may be charged the cost of recovery action taken by the credit union if you do not repay your loan as agreed.

Recovery from Benefits
• If you default on any repayments of your loan then Gloucestershire Credit Union may pass information about you and your loan to the Department of Works and Pensions (or its successor) for their consideration to make deductions from any benefits that you are or will become entitled to.