Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority  

St Albans District Credit Union Ltd Registered Office: 135 Hatfield Road, St Albans, Herfordshire. AL2 4JX

Registered in England NoIP00662C



ST ALBANS DISTRICT CREDIT UNION

135 Hatfield Road, St Albans, Hertfordshire, AL1 4JX

Tel 01727 859135   office@stadcu.org   www.stadcu.org


#Saver

How to Borrow


Who Can Apply for a Loan? Anyone who is a member of St AlbansCredit Union (if you are not already a member, you must be eligible to join).


How do our loans work?  Normally loans are for up to £5,000 but exceptionally can be up  to £7,500 above the amount of your savings in the Credit Union.  The interest rate, length of the loan  and the amount offered will depend on your “status” (a combination of your credit history, your history with St Albans Credit Union and your ability to afford the repayments).  We will ask for evidence of your income expenditure and other debts.  We do not charge fees for arranging loans and loans can be repaid early at any time without penalty.


How much might it cost?


Use the ABCUL  loan calculator to see guide Credit Union repayment cost.  


The Loan Calculator gives you an indication of the payments you might expect


Note:  the calculator is not an offer of a loan and each application is considered by the Loans Committee..

Types of Loans

Saver Loans:  For those members who have saved regularly with the Credit Union for at least three months. These members may borrow three times their savings for an initial loan and five times for a subsequent loan. Qualifying savings can not be withdrawn while there is an outstanding balance on the loan. Interest on a saver loan will normally be charged at 1%/month.  However, where applicants are clearly able to show the ability to repay a loan, members who have not been saving for three months may (dependent on their status) also be charged at 1%/month.  Those members who are self-employed or who have a high proportion of their income made up of state benefits, may be asked to save in this way before borrowing

.

Instant or Standard Loans:  Normally available to applicants who are in employment and can clearly demonstrate their ability to repay the loan. If there are insufficient savings, interest will normally be charged at 2%/month. Successful applicants may be required to make an initial standing order payment into their share account equal to their monthly loan repayment. This payment must remain within the member’s share account for the period of the loan.


Emergency Loans:  Available for essential items e.g. cookers, or for the buy-out of high cost debt. The maximum size of loan is £500. Where practical, the loan amount will be paid by the Credit Union directly to the service provider. Most emergency loans will be charged at 2%/month interest, though some loans, e.g. to buy out debt, may be charged 3%/month interest.


Loyalty and Guaranteed Loans:   Lower interest charges may be offered to members who have demonstrated their ability to repay loans, and whose financial situation is shown to be secure.  


Business Start Up: Loans are also available for business start up. A well-presented business plan and cash flow projection will be required.  Please contact us at the Hatfield Road office to discuss.


Pay Day Loans: The Credit Union does not offer Pay Day Loans, but may be prepared to buy out an existing Pay Day loan. Evidence will be required that such a buy-out will enable the borrower to regularly match future expenditure to their income.


Free Life Insurance For Borrowers:  Providing the borrower is under 70 years of age and subject to usual insurance conditions, free life insurance covering the outstanding loan balance is automatically included with each loan.


Click here to see how to apply for a loan


Information for Borrowers


The Hertfordshire Money Advice Unit (MAU) regularly warns people about illegal loan sharks and promotes Credit Unions as an affordable, reliable, community-based alternative. Some commercial companies offer legal loans at rates of 4000% APR and although missing a payment may not lead to the threats and violence that some loan sharks can cause the effect on family finance can be just as devastating. The MAU advises “Always seek alternatives to these lenders, and always seek debt advice from free and reputable  organisations”.


The MAU self-help fact sheet ' Coping with Debt” is available on the Herts Direct web site.


If you are worried about the amount of money you owe, you may wish to contact one of the sources of free debt advice 


How to Apply for a Loan

Apply on line

Use our e-mail application form


Apply on paper

 Use our Loan Application form or print off  a blank copy or request a copy by ticking the box on the Contact Us form.



Completing the form


However you choose to complete the form, ALL questions must be answered.   Where a question is not applicable or the cash value is nothing ,the letters "NA" or "NIL" or the figure “0” should be entered. Boxes must not be left blank. If part or parts of the form are not completed this will result in the application decision being delayed or the application rejected.



Income and expenditure should be shown on a monthly basis. Many people receive income weekly or monthly and quite a lot of expenditure is much the same each week or each month. If you need to convert weekly amounts to monthly amounts, multiply the weekly amount by 52 and divide the answer by 12. Some items only come up once a year, or from time to time, for these just divide the annual cost by 12 and put in the monthly average.


You will need to provide documentary evidence to support some of the information on your application form - for example: bank statements for the last 3 months and statements of all other debts. Please be sure to bring the appropriate paperwork with your completed application form and, if you are not already a member, proof of address and identity. Some of the papers will be copied and held by the Credit Union, and all the original documents returned to you. If you do not provide the documentary evidence this will result in the application decision being delayed or the application rejected.


Loans to borrowers who are married/cohabitating/civil partnership will normally be made in joint names. A partner’s details should only be included on the application form if they agree to sign the loan agreement. In cases of joint applications the partner’s income and expenditure must also be included together with supporting documents. Where a loan is granted in joint names there is a “joint and several” liability to make repayments. That means that each borrower is also individually responsible for the whole loan.  


You, and if applicable your partner, must sign the declaration on the application confirming that the information given is complete and accurate and that you give us your permission to carry out a credit search with a credit reference agency on yourself and your partner, if included.


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