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.
Name Change
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From Tuesday 1st October, Halton Credit Union will be trading as Beacon Savings & Loans, read on to see why we are changing our name.
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Why has Halton Credit Union changed its name
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Halton Credit Union is now trading under the name Beacon Savings & Loans
In 2019, Halton Credit Union extended its common bond i.e. the thing that links us all together as members, to cover a larger area. Formerly members had to live or work in Halton but with the extended common bond people who live or work in the whole of Cheshire, plus the adjacent WA postcodes are now able to join our credit union.
Therefore, it was envisaged that having a geographical place name, Halton Credit Union, would hinder our expansion as location names do not travel well. The need for member connection is vital and any potential members in our extended common bond may not be familiar with the location, Halton, therefore it would it not evoke a ‘sense of belonging’ to them.
Additionally, individuals in these other regions may be unaware that they can join.
Therefore, the most important thing was to make our credit union relevant to the members, both potential and existing and to the communities in which we will operate.
The new name ‘Beacon’ emotes reliability and security and ‘Savings & Loans’ gives clarity to what we do – it is clear and straightforward. The name is also easy to remember and recognise and will appeal to a more diverse range of potential members, avoiding terms that might feel exclusive or limiting, such as the place name Halton.
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Who chose the name Beacon Savings & Loans?
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Our existing members inadvertently helped to choose the trading name Beacon Savings & Loans
A working group shortlisted several suitable and available names. Existing members were then asked to complete a survey about their credit union, without being informed of its true purpose. Their responses were used to help select the new name. The survey was conducted blind to ensure that the chosen name would reflect the essence and values of the organization, rather than simply being selected based on popularity.
The new brand is fresh and modern and as ‘Beacon Savings & Loans’ feels more authentic as it accurately reflects some of the members comments:
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Who we are: ‘a beacon of light’ for those that need our services, a ‘lifesaver’ who people can turn to and a ‘light at the end of the tunnel.’
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What we do: ‘provide a safe place for people to save as well as offer affordable loans to members.’
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Does that mean Halton Credit Unions brand/logo change?
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The new branding will now feature a modern, fresh design with a more professional appearance.
Our original brand is also outdated and not really what we are about as an organisation. The logo was designed over 20 years ago and incorporated a pound sign – today HCU is less about money and more what we can do for members.
The recent changes align with our mission which is... ‘People and Planet before Profit.’ At Beacon, we aim to shine a light on the changes needed in our communities, but much more than that... we also want to actively participate in creating the solutions
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Does that mean that you are no longer a credit union?
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We will also be a credit union, we are proud to be a credit union
When you know what a credit union is, you know they are the best thing. Many people do not know what a credit union is and the name can feel misleading to some people. Whilst we are a union, given that we all come together for the greater good of everyone involved, we're not a trade union. Credit unions are a part of the cooperative movement, meaning that we are owned by our members. In fact we are a Savings & Loans cooperative.