Members make regular savings, as little or as much as they wish. These savings then form a common pool of money from which loans are made to members. After 13 weeks of saving, members can then apply for a loan from the pool. Interest on the loan is charged at only 1% per month on the monthly reducing balance. 12.7% Annual Percentage Rate (APR).
How much do I have to save?
Whatever you can afford - Members can save as little as £1 per week or £5 a month. The only requirement is that you save on a regular basis.
Will I get interest on my savings?
The Northampton Credit Union uses interest received on loans to pay overheads and the running costs. If the credit union makes a profit at the end of the year it is then distributed amongst members in the form of a dividend.
" Last year Northampton Credit Union paid a 5% dividend to its members"
Everybody can benefit from saving in a Credit Union.
Can I withdraw my money?
Simply download the share withdrawal form below and send it to the address on the back of the form. Or alternatively you can phone the Credit Union Helpline - 0845 456 1312 and we will post a form to you
How soon and how much can I borrow from the Credit Union?
Most credit unions expect you to save regularly for about 13 weeks before allowing a loan and any loan will be related to your savings in some way.
The amount you will be able to borrow will depend on how much you need, what you can afford to repay, and the credit union's policies.
To apply for a loan simply download the form below and send it to the address on the back of the form. Or alternatively you can phone the Credit Union Helpline - 0845 456 1312 and we will post a form to you.
Security
Credit Unions have to be registered with the Financial Services Authority (FSA). They are covered by the Credit Union Act 1979, are independently audited and they are regularly monitored by the FSA.
Your business is private in the credit union because all members and Officers who have access to personal information must act in a confidential manner at all times.
Are they insured?
They are insured against fraud and theft. They provide life and loan protection insurance at no direct cost to the member payable to a nominated beneficiary.
The life savings insurance means that if you die, your beneficiary can receive up to twice the value of your shares.
The loan protection insurance covers the amount of your loan outstanding.