LOANS POLICY

Twice a member’s shares up to a maximum of £500.00, member must be seen to save for a minimum of thirteen weeks before the first loan can be applied for. Secure loans will be decided upon by the credit committee.

A member with shares over £500.00 may be allowed to borrow their share value plus up to 50%.

All first loans are to be paid back over a minimum period of three months before applying for second loan.

There will be no top ups on first loans.

Twice a member’s shares up to a maximum of £2,500.00.

 A top up may be given up to two times the member’s shares at the discretion of the Credit Committee and the Board of Directors after six months of the previous loan being granted unless it is a secure loan. The original loan needs to be at least 30% repaid, before applying for a top up.

Three times a member’s shares up to maximum of £4,000.00.

 A top up may be given up to two times the member’s shares at the discretion of the Credit Committee and the Board of Directors after six months of the previous loan being granted unless it is a secure loan. The original loan needs to be at least 30% repaid, before applying for a top up.

Four times a member’s shares up to maximum of £10,000.00.

 A top up may be given up to two times the member’s shares at the discretion of the Credit Committee and the Board of Directors after six months of the previous loan being granted unless it is a secure loan. The original loan needs to be at least 30% repaid, before applying for a top up. 

Loans over £5,000.00 (Max. £10,000.00) must have Credit Committee and Board of Directors approval. Maximum loan term is 5 years or 60 months.

Failure to make regular payments will result in action, in line with our non-payment policy and the principles underlined within the GDPR framework. 

The Credit Union can agree to accept a guarantor for a member’s loan in certain circumstances. e.g. When a member is over the age of 80 for the duration of the loan. It should be noted that the guarantor must be a member and the maximum they can borrow is split between them and the applicant meaning the maximum they may borrow or be guarantor for would be £5000. Subject to credit committee.

Should you encounter any financial difficulty while paying back a loan don’t hesitate to contact us, we are here to help. The earlier we know the better quality of help we can provide.

If member is or has been in arrears or missed more than 3 payments a top up may not be approved.

It is the member’s responsibility to amend their standing orders as necessary.

Download the full loan policy here

Penilee Credit Union is governed by FCA, and abide by the principles underpinned by the General Data Protection Regulation (GDPR). Should you wish to view Privacy Statement in full it can be view at www.penileecu.co.uk, contact us 0141 891 8600, or request a copy in shop.