Skip to main content

The loan is linked to how much and how regularly the member has saved. Currently this loan is double what a member has in savings.  This loan goes up in stages with the first loan a maximum of £500.00, which would require £250.00 in savings. The interest is 1.63% per month on the reducing balance.   The interest charged on a typical £500.00 loan paid weekly over 51 weeks with payments rounded up to £11.00 a week would only be £51.89.  This interest rate reflects the fact that the member has had to save for a minimum of 13 weeks to access this loan and shown that they are able to save at least the repayment value.  50% of the outstanding loan is retained in the shares at all times.  This enables the member to access their savings if an emergency arises without the need to go to another provider.

When saving for a loan, there is a share boosting rule. This rule is to prevent members loading their shares and applying for a much larger loan. Members are allowed to pay in 50% of their share balance over a four week period. Anything above that amount will not be used in any calculations .

Our Loan 1 product is available to (and based on) members who have savings in their share account, therefore, the interest rate charged is lower than that of the rate charged on our Loan 2 and Loan 3 (1.63% as opposed to 2.68%). In order to provide a true comparison, the example below uses £500 which is the maximum amount given for a members first share based loan)


LOAN 1 amount borrowed: £500, would require £250.00 in savings;

Repayments would be rounded up to £11.00 per week, over 50 weeks, with a final payment of £1.89;

Interest is charged at 1.63% (19.6% Annualised Interest. APR for representation 21.5% ) on the reducing balance would be equal to £51.89;

Total amount repayable = £551.89.


Please note: Interest may vary slightly due to start date of loan and your terms of repayment.