Our loan policy sets out the general criteria by which we assess the eligibility for lending to our members. The policy changes from time-to-time to reflect the needs of our members and the credit union as a whole. We use a share multiplier on our larger products (Affiliate and Non-Affiliate Loans) to determine how much you can apply for. The smaller loan products (Everyday and Member loans) are not subject to the share multiplier for up to £7,500. This means you can have a total outstanding loan balance spread over these products of up to £7,500 with minimal shares. For loans over this amount we use the following share multiplier:
3 x shares* + £2,000 = Maximum total loan balance (up to £20,000). So, for example, if you have £4,000 in savings you will be eligible to apply for a loan of up to £14,000.
Please note that the share multiplier does not overrule product capacity limits so you should check individual loan products for eligibility.
*Shares must be held in a Membership account.
PLEASE NOTE: Further evidence may be required to support your loan application. This would consist of bank transactions for the last 60 days showing all of your income and expenses and a credit check may be carried out. If this evidence is requested, your loan application will not be assessed until this information has been received.
In order to process your Loan Application, we reserve the right to perform a consumer credit check and an identity check on you with a Credit Reference Agency (TransUnion).
To do this, we will supply your personal information to TransUnion and they will give us information about you. This will include information from your credit application, about your financial situation and financial history. TransUnion will supply to us both public (including the electoral register) and shared credit, financial situation, financial history information and fraud prevention information.
We will use this information to:
- Assess your creditworthiness and whether you can afford to take the loan product;
- Verify the accuracy of the data you have provided to us;
- Prevent criminal activity, fraud and money laundering;
- Manage your account(s);
This additional information will enable us to tackle financial exclusion far more effectively as the best answer if often not to lend more but to assist members with savings and budgeting skills.
All of these aims - the protection of member's money, responsible lending and avoidance of bad debt - are entirely consistent with the traditional values of the credit union movement.
To find out more about how TransUnion use your information and the support provided to the Credit Union, see their privacy notice here - https://www.callcredit.co.uk/legal-information/bureau-privacy-notice.