Question 1

After you apply for a loan

Accepted Answer

Assessing a loan is a complex business. Your Credit Union needs to follow a strict approach as required down by our regulators, the Financial Conduct Authority and Prudential Regulation Authority.

Loan assessments can take some time. Therefore, always allow 5 working days (i.e. one week) for a loan decision, especially during busy periods. During October to December, loans take 10 working days (i.e. two weeks).

Our assessment includes a thorough affordability check to ensure that the loan repayments can be met.

We’ll also look at your history of borrowing, including with the Credit Union.

During this assessment, we may also ask you to provide additional documentation, such as bank statements, identification or payslips

You can provide access to your banking information using Open Banking; this is always the quickest way.

Once we’ve completed our assessment, we’ll let you know.

Please do not contact us for a progress update until after 10 days has passed. Doing so will take time away from assessment, and this is likely to delay the loan decision.

Question 2

Topping up your loan

Accepted Answer

Topping up your loan is when you want to increase your borrowing, but still have an outstanding balance.

For example, you may have borrowed £500, repaid £300 of that so you have £200 outstanding. Topping up is when you apply to bring your loan back up to £500 (or more).

You can top up a loan **only **after you’ve made **six months payments on your current borrowing. **

_For example, if you pay £50 per month back off a £500 Opportunity loan you must have repaid £300 (£50 x 6 months). _

An application can be submitted up to 20 days before you are due to top up. Any application made before that period will be automatically decline and not considered.

_For example, if you will have made 6 months’ repayments by 20 November, you can apply on 1 November. You cannot apply on 31 October. _

Question 3

About open banking

Accepted Answer

When you apply online for a loan, to reduce paperwork and speed up your application, we use Open Banking.

Open Banking is a **secure **way to securely grant a regulated financial services organisation time-limited access to your bank account transactions. If you choose to provide this access, you no longer need to send in your bank statements to the Credit Union. Loan applications can be made entirely online. Decisions are quicker.

${color}[#400040]( You’re protected) We’ve been taught to never share our account details. That’s still good advice in many ways, however the difference with Open Banking is that software and security systems give you the option to share your account information securely. Data is encrypted and usage is tracked. Only companies regulated by the Financial Conduct Authority can access your information.

${color}[#400040](How it works) When you apply online for a loan you may be asked to provide your bank statement. You still have the option to bring these into the office, but that will delay your application. Alternatively, if you have an online account, you can select to provide this added secure information over the internet. This enables us to provide a much quicker decision.

If you choose to do provide online access you will arrive at a secure portal where you select your bank account and log in using your usual online banking credentials. Your log in details are not shared and remain secure. No one

Question 4

What loan is best for me?

Accepted Answer

${color}[#000000](For first time borrowers) Our OPPORTUNITY loan is charged at 42.6% APR.

For 1st-time borrowers
Borrow up to net monthly income including benefits (£3,000 max)
Over 1 to 36 months

Apply now

Existing members topping up their loan

OPPORTUNITY loan. 42.6% APR. Borrow up to £3,000 (including existing balance)

Apply now

OPPORTUNITY PLUS loan. 34.5% APR __ Borrow £3,001 TO £5,000 (including existing balance)

Apply now

HELPING HAND loan. 26.8% APR

Borrow £5,001 TO £10,000 (including existing balance)

Apply now

Existing members wanting a new loan (exluding [top ups](/en/article/topping-up-your-loan-opj9yo/))

OPPORTUNITY loan. 42.6% APR. Borrow up to £3,000 (including existing balance) Apply now

OPPORTUNITY PLUS loan. 34.5% APR __ Borrow £3,001 TO £5,000 (including existing balance)

Apply now

HELPING HAND loan. 26.8% APR

Borrow £5,001 TO £10,000 (including existing balance)

Apply now

For members who've been with us for more than two years and have at least £500 in savings

LOYALTY loan. 12.6% APR

Borrow up to 3x what you have in savings (£15,000 max)

[Apply now](https://centralcu.co.uk/saver-mem

Question 5

How to apply for a loan

Accepted Answer

When applying on loan you should have to hand your:

National Insurance Number
Bank account number and sortcode (if you have one)
Online bank account access passwords etc. (if you wish to submit an application using Open Banking)

If you are a new member you can apply to join the Credit Union at the same time you apply to borrow. Existing members can apply at anytime, provided they’ve paid down at least six months’ of any existing loan.

Use the sliders to select how much you want to borrow and over what period:

Sliders to select loan value and term

Check that you meet the qualification criteria. If you do not meet the criteria (e.g. your income is too low) click your browser’s back button to select a new loan value and term.

Check you are eligible to apply

Read the terms for borrowing. Briefly, we cannot lend money if you are subject to a Debt Management Plan, Debt Relief Order or a form of bankruptcy. We will check your credit history using Transunion but a poorer credit profile does not necessarily prevent you from applying.

Read the terms and conditions

Select if you are an existing member or want to join the

Question 6

How much interest do you pay on savings?

Accepted Answer

The Credit Union pays a dividend on your savings, rather than a fixed rate of interest. It is paid by the Credit Union to make your savings grow. Dividends are a share of the profits, applied as a percentage return on your savings.

Members agree the rate of dividends at each Annual General Meeting.

Members agreed, at the most recent annual general meeting in June 2019, to pay 1.5% on adult accounts and 2% of junior accounts. However, rates do vary from year to year and cannot be guaranteed in advance.

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