Halton Housing Trust, LHT and Riverside (social housing providers in Halton) have invested money into this scheme, for the use of their tenants. This loan is used as a contingency loan, for larger household items such as a washing machine, cooker etc that have broken down and need to be replaced. It can also be to pay for car insurance and other such costly items of expenditure. This is usually for good members only, who have an increasing share balance; are adhering to their loan repayment terms and have no history of delinquency with us. It is not linked to savings but the member has to have had at least one previous loan and paid to terms, before they would be considered. These loans are usually up to £400.00 and can only be accessed up to twice a year on a rolling balance. Our Loan 2 product is available to members with a good historical account with HCU and an increasing share balance. The interest charged for a Loan 2 is at the rate of 2.23%.
The interest charged on these loans are 26.8% APR which is 2.23% on the reducing g balance. The interest charged for £400.00 over one year paying weekly over 51 weeks, payments rounded up to £9.00 per week would be £58.32. This higher interest rate reflects the risk to the HCU is greater as it is not linked to shares. Housing Associations can also make referrals for the Essential Household Goods Loan to their tenants.
LOAN 2 amount borrowed: £400;
Repayments would be rounded up to £9.00 per week, over 51 weeks, with a final payment of £8.32;
Interest is charged at 2.23% (26.8% APR) on the reducing balance would be equal to £58.32;
Total amount repayable = £458.32.
Please note: Interest may vary slightly due to start date of loan and your terms of repayment.