Members are expected to establish some ‘history’ with the credit union before applying for a loan. This is a savings period of at least 3 months
Currently there is a limit on Savings of £15,000 per member.
Money can be borrowed for any legitimate purpose such as:
- Replacing a household items like a washing machine.
- To purchase a car.
- For the holidays or events.
- For DIY.
- To pay off credit card bills and consolidate debt (thanks to the cheaper interest rate).
A simple comparison about loans.
If you borrow £500 to be repaid over a year...
- Provident will charge £17.50 per week and you will repay a total of £910 (information taken from their website 01.01.2015).
- Medway Credit Union (when you've saved for a while) will cost £11.00 per week and you will repay a total of £558.11, leaving you with an extra £351 in your purse - how good is that?