Please note that the loan calculator is for illustrative purposes only.
Unsecured loans are available to existing members with more than three month’s worth of savings. Amounts between £50 and £10,000 can be borrowed with flexible repayment terms.
Unsecured loans are ideal for members who have saved up with the credit union but do not have sufficient funds to take out a secured loan.
All interest on loans granted by Highland Communities Credit Union are calculated on a reducing balance, with no hidden fees or early repayment penalties. All profit made from interest is reinvested back into the credit union itself.
How much will my unsecured loan cost?
Features of this loan include:
- Interest rate of between 12.6% and 23.1% APR
- Save whilst you repay
- No penalty for early repayment
- Built-in loan protection insurance
In order to apply for this loan, you must:
- Be aged over 18
- Have a minimum of 3 months’ savings with the credit union
- Provide sufficient proof of income
- Have accumulated in savings at least a third of the requested loan amount
Terms and conditions
HIGHLAND COMMUNITIES CREDIT UNION LENDING POLICY
- Applicants must be 18 or over
- Applicants must be existing members of HCCU
- Loans must be used for a ‘provident and productive purpose’
- Must have saved with Highland Communities Credit Union for a minimum of 10 weeks (subject to type of loan and method of deposit)
- Applicants must not be in default or arrears on an outstanding HCCU loan.
- Applicants must not be in a current bankruptcy, DAS or Protected Trust Deed debt scheme
UNSECURED LOAN of between £50.00 and £10,000.00 at an interest rate of between 1.75% – 1% per month (23.1% – 12.7% APR)
- Must be repaid within five years
- The member may only borrow up to 3 times their shares (this is reduced to 2 times their shares for members over 70)
Example a 30-year-old member with £1,000.00 in shares may borrow up to £3,000.00, whilst a 75-year-old member with £1,000.00 in shares may borrow up to £2,000.00
- The member must save whilst repaying
- The member must have saved with HCCU regularly for at least 10 weeks or 3 months if saving by standing order
- The member must keep one third of the original loan balance in shares
Example if a member borrows £3,000.00, they must keep at least £1,000.00 in shares
SECURED LOANS of between £50.00 and £10,000.00 at an interest rate of 0.5% (6.2%APR)
- Must be repaid within seven years
- The member may only borrow an amount equal to their share balance
- A value equal to the loan balance must be kept in shares for the whole duration of the loan term
TOP-UP LOANS can be given if the member requires
Conditions: Applications will be considered upon merit and individual circumstance; however it should be noted that the member should have made significant repayments on their existing loan before applying for further credit.
Proof of income
Please note that details and evidence of income and expenditure will be required as part of the application process (with the exemption of applications for Secured Loans). Suitable evidence of income and expenditure includes, but is not limited to:
- Bank statements (2 months of most recent ones)
- Wage slips (3 months of the most recent ones)
- Copy of your DLA/PIP/Universal Credit benefit award letter (others may be requested if required).
- Copy of your SAAS and/or Bursary award letter.
- Copy of your Housing Benefit/LHA award letter.
- Copy of your State Pension award letters and details of any private pensions.
HIGHLAND COMMUNITIES CREDIT UNION LOAN INSURANCE
Loan insurance is paid for members by Highland Communities Credit Union through CUNA Mutual Group Limited. This means that should a member die with a loan outstanding it will be paid off in full.
Insurance will not be paid out where death results from an injury or illness for which medical advice, consultation or treatment was received within the 6 month period prior to the deposit of shares or receiving a loan.
Insurance will not be paid where death is the result of:
- War or service in the armed forces
- Suicide within 6 months of deposit or granting a loan
When applying for a loan a member is required to make a formal declaration regarding their health. HCCU expects members to answer this honestly, and should there be a health problem to inform us of this. It will not necessarily prevent a loan being granted, but may cause HCCU to restrict the loan limit. If HCCU is concerned the applicant may be asked to provide a guarantor, who should also be a member of HCCU.
Members may apply for loans either:
- in person
- by post
Applications are normally processed within one week of submission, however please note that this may take longer in some circumstances.
PLEASE NOTE that share withdrawals will NOT be processed if loan repayments are in arrears.
THE ROLE OF THE CREDIT COMMITTEE
The Credit Committee meets once a week to consider loan applications made by members. This is to ensure that all loans granted have been properly considered by more than one single person, and fulfils our responsibility as responsible lenders to our community.
In line with these objectives, the Credit Committee may take the decision to use a CRA in order to verify the information on any given loan application. However, members with low credit scores should not be put off from applying as ultimately all loans are granted based on ability to repay rather than previous financial difficulties.
WHEN A LOAN IS DECLINED
If we decline your loan because we don’t think your budget stretches to such a repayment, you will have the opportunity to prove otherwise by agreeing to a savings plan with the HCCU for a period of at least 3 months. We will then reconsider a loan application, however please note that a loan is not guaranteed.
Should we decline a loan, you have the right to appeal against the decision. An appeal should be submitted in writing within 10 days of our decision, giving the reasons why you feel we should grant the loan.
CHANGES IN CIRCUMSTANCES
HCCU recognises that members may have an unexpected event or a sudden change in their circumstances which affects their ability to keep up with repayments. Any member who has difficulty making their repayments should contact Highland Communities Credit Union at the earliest opportunity to discuss a way forward.
If you are an existing member with savings and wish to apply for a loan, please click here.
If you have not yet joined the credit union but wish to do so, please click here.
Should you prefer to apply in person, please visit either our Fort William or Inverness office along with suitable proof on income.
Alternatively, you may request an application form by post or email.
Should you require further information or guidance on making an application, please telephone or email the credit union.