Loans

Our current rate ranges from 6.8% (APR) to 12.68% (APR) and our rate is constantly checked to ensure that it is competitive. Flamesavers Credit Union does not charge fees or transaction charges

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.

REMEMBER - ONLY MEMBERS ARE ELIGIBLE TO RECEIVE LOANS FROM OUR CREDIT UNION

Flamesavers will consider loan applications from members for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits.

Applications for loans are made on a standard loan application form consisting of two pages. Loans can be applied for by calling into our office, by requesting a form via the telephone or downloading a form from our website. The completed form can then be posted or if you are able to scan your completed form then you can send it as an e-mail attachment. Our staff will give you any assistance required. Loans will then be considered by the Loan Officer.

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 member’s record of savings and loan repayments, as well as their ability to repay.

A member can borrow up to four times what they have in their savings (up to £15,000) and during the course of the loan a quarter of the loan balance has to be kept in your savings. Therefore as the loan reduces funds from the savings become available to withdraw, pay off part or all of your loan or have an additional loan against. Once the loan has been agreed money can be transferred into members' bank accounts.

Planning and managing repayments

Flamesavers is 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.

Five years is currently the maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to our staff, who 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 repaying your loan quicker than agreed.

Interest on Flamesavers loans

By law credit unions cannot charge any more than 2% per month on the reducing balance of a loan. This represents an interest rate of 26.8% APR (Annual Percentage Rate). Flamesavers usual current rate is 0.93% per month considerable less than the maximum and our rate is constantly checked to ensure that it is competitive.

Flamesavers does not charge fees or transaction charges. 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.

Please do not be misled by APR’s. Although our APR may appear to be high, because of the way we calculate our interest you will probably pay back far less to Flamesavers. The important thing to check is your monthly repayments and your total interest over the term of the loan. If you require any advice please contact the office.

Lastly, please remember that all our loans include free life insurance. Premiums are paid for you by the credit union.