Q Who can join?
A Anyone who
is over the age of 16
lives in the Burngreave area
wants to save regularly
wants to borrow money when needed, at an affordable rate of interest (over 18s only)
Q How do I join?
A Just fill in our application form and bring it to a collection point, or ask one of our collectors to help you fill it in. You will need to show 2 proofs of identity and pay a £1 entrance fee. After that you can start saving as much or as little as you want. Your savings are called “shares” and as long as you have at least £1 saved (£1 in shares) you are a member of the Credit Union.
Q Do I have to have a bank account?
A No. You can pay by cash at a collection point, and cash our loan cheques free of charge at a local post office. But if you do have a bank account, you can pay by cheque or by monthly standing order – ask us for a standing order form. We can also arrange for you to make your cash payments at your local post office.
Q How do I keep a record of my payments?
A If you pay at a collection point you will be given a passbook in which we record your payments. We check passbooks regularly against our own records. If you pay by standing order, we send you a statement on request. Or you can phone the office to check your balance
Q How soon can I have a loan?
A Any member can take out a loan after saving regularly for 10 weeks or 3 months. There are no credit checks – we just look at your savings record when you first apply for a loan. The amount you can borrow is based on the amount you have saved. Loan application forms are available at collection points and from our office. We normally process loans within a week. Your loan agreement will say how much you will repay each week or month, and for how long (maximum 3 years). If you want to pay it off sooner, we will not charge you extra. See also our information sheet “Rules and Guidelines for loan applications”.
Q How much interest will I pay?
A £100 borrowed over a year, will cost you about £6.50 in interest. That’s 12% APR, which is very competitive for loans under £2000.
Q What happens to the interest?
A Interest charged on loans is our main source of income. It just about covers our running costs. If there’s anything left over we pay a dividend to members. Our staff are funded by Burngreave New Deal for Communities until September 2005.
Q Can I take out my savings whenever I want to?
A You can take out all or part of your savings whenever you like, but remember that if you withdraw all your shares you will lose your membership. Just ask for a share withdrawal form at the office or at a collection point. Special rules apply if you have a loan.
Q Do I have to keep on saving while repaying my loan?
A Most members keep saving a small amount while repaying their loans so
by the time they’ve paid off their loans they’re better off than before
they can borrow more another time
the pool of money from which everyone can borrow continues to grow.
Q What other benefits will I get? A By joining Pitsmoor Credit Union you will be joining a true community enterprise! This is our money, helping members of our own community. You will also get free life insurance (if you’re under 80), covering your loan, with a pay-out of double the value of your shares.
WANT TO KNOW MORE?
Telephone our office or come to a collection point:
Pitsmoor Credit Union Office
Open for enquiries Mon-Fri, 10 am – 3 pm.
Tel 273 8555
pitsmoorcreditunion@burngreave.net
Regulated by Financial Services Authority Ref No 213562.