Loans We Offer

Loan Account 1 - Standard Loan @ 1.5% per calendar month on decling balance

Loan Account 2 - Instant 450 @ 3% per calendar month on decling balance, instant access loan

Loan Account 3 - Instant Plus+ interest variable

What is different between accounts 1 and 2 ?

Loan Account 1, Standard Loan, is based on multiple of Shares, savings, held at time of application

Loan Account 2 instant access loan and are based on disposable income, ability to repay.

Loan Account 3 Instant Plus+ loans up to £7500 you are in full time employment minimum take home pay £1,300  based on meeting credit check criteria, disposable income the ability to repay.

Before applying for any loan ask yourself can I afford to repay, see section on Budget Planner

What you need when applying for a loan

In deciding whether or not to grant the loan the loan officer or credit committee will take into account the members record of savings and loan repayments, as well as ability to repay. Once the loan is granted the member will be asked to complete a promissory note, which is a legally binding document being a promise to repay the loan, and to commit to regular repayments.

Planning and managing repayments

Credit unions are flexible with regard to repayment plans, though there are some legal limitations to length and amount of loans. The member will be advised on the best repayment plan to meet their own circumstances. Members are generally advised to repay a loan in as short a time as possible. 3 years is currently the maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the credit union, which will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan will be renegotiated if possible.

There are no penalties associated with clearing your loan quicker than agreed.

Interest on credit union loans

By law credit unions cannot charge any more than 3% per month on the reducing balance of a loan. This represents an interest rate of 42.6% APR (Annual Percentage Rate). Credit unions do not charge fees or transaction charges for loans. View our loan calculator to see how reasonable a credit union loan could be. We also have regular promotional rates of interest. Since the interest is charged only on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned.

Knowsley Mutual Credit Union Tel: 0151 545 3380 Email:
Knowsley Mutual Credit Union is authorised by the Prudential Regulation Authority & Regulated by the Financial Conduct Authority and the Prudential Regulation Authority FRN 213483