The standard loan is exclusively for members who’ve saved regularly with us for at least three months. You can apply to borrow up to twice your savings, and possibly three times if you have a good loan repayment history (up to a maximum of £7,500).
The interest rates are:
£100-£4,999: 1.25% per month which equals 15% a year (APR). If the loan is the same as the amount in your savings account, the interest rate is 0.65% a month which equals 8% a year (APR)
£5,000-£7,500: 0.65% a month which equals 8% a year.
Because we’re a community-owned, not-for-profit organisation, our priority is on helping local people and offering a fairer alternative to other sources of loans. By choosing to take a loan out with us, we can guarantee that:
- it’ll be clear from the start how long you’ll be repaying the loan
- the cost of instalments will be set out in the loan agreement
- we won’t penalise you for paying off your loan early
- there are no set-up costs
- if you pay your loan off early, you’ll pay less
- you’ll know you’re with an organisation that supports its local communities and economy.
To be eligible for a Standard Loan of £100 to £4,999 you will need to:
- have a good record of saving with Stroud Valleys Credit Union
- agree not to withdraw your savings until the amount left to repay is less than you have in your savings
- have sufficient disposable income
To be eligible for a Standard loan of £5,000 to £7,500 you will need also to:
- have a minimum household income of £18,000 mainly from employment or pension
- be up to date with any existing or previous loans
- make repayments by standing order unless cash repayments on previous loans were made without defaults
- have no adverse credit findings for 3 years
- have lived at your current address for at least 2 years
Please note – we consider each application individually on its merits using the information supplied by the applicant. The more information we have, the quicker we can make a decision. Also, we can’t guarantee that every application will be successful.
How to apply for a loan
There are three ways to obtain a loan application form:
- Visit one of our customer service points to collect a loan application form
- Download an application form from the ‘Applying for a loan’ page
- Ask our office to send one in the post (tel: 01453 298785 or email firstname.lastname@example.org).
Return the form + all the necessary accompanying documents (which are listed on the back of the form) by post to the main office in Stroud or bring it into one of our customer service points – their locations and times of opening are on the ‘Contact’ page.
How to become a member
In order to apply for a loan, you’ll need to be a member. Joining is simple – open a savings account with us which costs £2 admin fee (non-refundable) and £5 as your first savings deposit. You don’t need to have saved anything more before applying for a loan although when you’ve saved regularly for at least 3 months, you could be eligible for a lower rate of interest.
As a member, you’ll have a share of the profits at the end of each financial year and can have a say in how the organisation is run.
If you’re not already a member of Stroud Valleys Credit Union, collect a joining form from one of our customer service points or ask our main Stroud office to send you one in the post along with the loan application form.