Burngreave New Deal for Communities

RULES APPLYING TO ALL LOANS

• Interest is deducted from each payment and calculated per day from the date of the previous payment. The annual rate is 12%. This rate applies to all loans, however small.
• The maximum amount that you can borrow is £3000.
• The maximum loan repayment period is 3 years.
• If you miss a loan payment you should make it up within a month or contact the credit union office.
• Loans can be repaid more quickly than stated in your loan agreement, which means you pay less interest. You can also pay off your loan in full at any time without extra charges.
• If you are having difficulty repaying a loan then please get in touch with our loans officer to discuss the options available to you.
• Loans in arrears cannot be refinanced ("topped up"), but they can be rescheduled in order to reduce your repayment amount.
• You must sign a new loan agreement if you refinance or reschedule your loan.

First loans

• You can apply for a first loan after 10 weeks (or 3 months) of regular saving.
• You can borrow up to twice what you have saved.
• Your first loan must be repaid in full before you can have another.
• First loan applicants are always seen personally. Please phone the office to make an appointment.

Second and subsequent loans

• A second loan cannot be taken out until the first has been repaid
• Second and subsequent loans can be up to 3 times the amount you have saved, up to a maximum of £3000.
• Second and subsequent loans can be "topped up", as long as you have a regular repayment record

GENERAL GUIDELINES

• Before taking out a loan you should work out what you can afford to repay each week or month. We do not carry out credit checks, but we will expect your previous savings/repayment record to show that your proposed repayment amount is realistic.
• When calculating the maximum loan available to you. only regular amounts deposited during the period before the loan application will be taken into account.
• We advise you to continue saving at least £1 a week (£5 a month) while repaying your loan.
• Although we like you to keep your shares in the Credit Union, you can withdraw them at any time, as long as you don't reduce them to below the level of your loan. You can also transfer shares to pay off your loan, or to bring your loan repayments up to date.
• If you think your loan application has been unfairly rejected by Credit Committee, you can ask for it to be reconsidered by the Board. You will then be informed of the Board's decision in writing within 2 weeks.
• Loan applications are normally processed within one week. Cheques must be picked up in person from the office or from a collection point.
• You can also phone the office (0114 273 8555) at any time to make an appointment with the Loans Officer to discuss any matters relating to your account.

IF IN DOUBT, ASK!

Loan application forms can be obtained from the office or from one of the collection points: