THE FAMILY LOAN
Our new Family Loan can help you pay for life’s little emergencies and save for larger family expenses like holidays and Christmas while you are repaying your loan. This is a low-cost alternative to other lenders and is available to families and individuals who receive Child Benefit.
Monthly repayments for a £500 Family loan from SVCU will be less than £12 compared to £18 for many other lenders.
The cost of credit for a £500 Family loan over 12 months with SVCU is about a quarter of the cost of other lenders.
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How does this loan work?
The loan is based on you paying your Child Benefit into a SVCU savings account from which your loan repayments will be made.
You can apply to borrow up to £500 and repay over a period of up to 12 months. The 12-month term interest rate is 3% per month. You can use our loan calculator to check the monthly repayments and credit cost for other amounts and repayment periods.
Repayments of your loan are taken from the account that your Child Benefit is paid into. Any money left over after loan repayments can be left in your savings account or paid into your bank account.
We encourage you to save the money left after your loan repayment if you can, but this is not mandatory.
How do I apply?
You will need to fill in a short application form and provide us with bank statements. We will ask you to come in and talk to us so we can make sure that you will be able to afford the loan.
Once your loan application has been accepted, we will open a savings account for you and you will need to send a letter to HMRC asking them to pay your child benefit into your savings account.
Once we have received the first payment of your Child Benefit, we will pay the agreed loan amount into your bank account.