Examples of how loan interest rates are applied

Mark needed help when his car failed its MOT
    Example 1. Mark joined the credit union and applied for a loan of £500 for car repairs. He had a good credit record and he was granted a ready loan at 3% a month interest (42.6% APR).
Mark’s wife gets her new washing machine
    Example 2. Mark paid his £500 loan off satisfactorily then applied for another loan of £500 to buy a new washing machine. This time, as he had a good repayment record with SVCU, he was granted a ready loan at 2% a month (26.8% APR).
Emily’s sick cat
    Example 3. Emily joined the credit union and immediately arranged a standing order to pay £10 a week into her savings. After 6 months she had saved £260 and applied for a loan. She was granted a standard loan of £500 for vets fees at 1% a month interest (12.68% APR). Her £260 savings were held as part security for her loan.
Maggie’s well deserved holiday
    Example 4. Maggie is on an income of £18,000 a year and has a good credit rating. She applied for a loan for a holiday and was granted a ready loan of £1,500 at a rate of 2% a month (26.8% APR).
Ben’s new car
    Example 5. Ben is in secure employment with an income of £30,000 a year and has a good credit rating. He applied for a loan to buy a car. He was granted a ready loan of £7,000 at an interest rate of 0.65% a month (8% APR).

You can find out more by clicking on a link below

    Standard Loans – more information
    Ready Loans – more information