Loans

Once you have been a member for three months, have a minimum number of shares and you are over 18 years old, you can apply for a loan. The Credit Committee will look at your savings record and your ability to repay when deciding whether or not to grant a loan.

You can obtain very low-cost loans of just 1% interest a month (12.68% APR) with no hidden fees or transaction charges. This is ideal for paying for holidays, cars, home improvements, Christmas presents, or make repayments on existing debts such as credit cards (larger loans may be repaid over a period up to 36 months). To see an explanation of how the interest charges are calculated take a look at the page on interest rates.

To get an idea how much your loan might cost, click below on the Loan Calculator button. This will link you to the ABCUL website's loan calculator. (ABCUL stands for the Association of British Credit Unions Ltd). However, this will only provide you with a guide and Rugby Credit Union cannot be responsible for any variation between these figures and any others you may be quoted. When you have finished on the ABCUL site closing that window should bring you back to this page.

How do I apply for a loan?

Just fill in a Loan Application form which can be obtained at any collection point, or you can download a form from this website. Click here on Loan Application form which you can then print out. Send your completed form to Rugby Credit Union (see Contacts for the address) and your application will be considered by the Credit Committee. You will normally be advised of the outcome within 10 days, but in an emergency the Committee may be able to make a decision sooner. Your loan will normally be paid to you by cheque or by electronic bank transfer, but cash loans are possible in certain circumstances.

What happens if you get behind with your loan payments

Initially you will receive a warning letter, because it's possible your bank has not processed a standing order payment, or there is some other explanation as to why your payment has not come through to us. Being a credit union we can be sympathetic if our members have a problem repaying a loan. In that case we ask them to come and see us so that we can find some way to help - for example, repaying the loan over a longer period. However, if you do not respond we will take appropriate action through the courts. Remember, a credit union is not bank, but a savings & loans cooperative. Thus your loan will have been provided through members' savings - we have no other source of capital - and the members expect the credit union to take whatever action is necessary to recover their savings.