Find out today how a loan from us could help you.
Our current interest rate on all loans taken from January 2022 is 0.5% per month. Our rate is constantly checked to ensure that it is competitive. Flamesavers Credit Union does not charge fees or transaction charges.
Loans
Our current interest rate on all loans is 0.5% per month. 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 THE 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 loan application form and are completed on-line.
Please contact the office to discuss your application if you are unsure of the correct figures for the loan form. It is a legally binding document and needs to be completed correctly or you may need to re-apply.
Please follow the link below.
Fill in the online form here.
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 may borrow up to five times their savings balance, up to a maximum loan of £20,000.
So for example £1000 in savings would allow you to borrow a maximum of £5,000.
During the course of the loan one fifth of the loan balance must be kept in your savings.
As the loan reduces, funds from the savings become available to withdraw, to pay off part or all of your loan or to secure an additional loan. Once the loan has been agreed funds will 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 earlier than agreed, or in making lump sum repayments.
Interest on Flamesavers loans
By law credit unions cannot charge any more than 2% per month on the reducing balance of a loan. Flamesavers’ current rate is 0.5% per month (6.17% APR) considerably 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. Comparing APR’s can be misleading. The important thing to compare is the monthly repayments and the total interest over the term of the loan. If you require any advice please contact the office.
Lastly, remember that all our loans include free life insurance. Premiums are paid for you by the credit union and the loan written off on a member’s death, with any savings allocated to the member’s nominated recipient.
Up up to £20,000
