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How does the Credit Union work?

how credit union loans work

Wirral Credit Union is a not for profit, financial co-operative that exists for the benefit of its members to help them manage their finances better by providing savings facilities and access to low cost loans.

Credit Union members make regular payments into their savings account either directly from their salary, if their employer is able to make payroll deductions, or by standing order from their personal bank account. These savings accumulate over time and allow the member to budget for future expenses or to apply for low cost loans based on multiples of the amount of savings they hold.

Payroll Deduction Schemes

We currently have payroll deduction agreements with Wirral Borough Council, Biffa, Magenta Living (Formerly Wirral Partnership Homes), Cafcass, Cheshire&Wirral (NHS), CCO NHS TRUST, Clatterbridge Hospital, Colas, BAM Nuttall, Hochtief, Atlantic Steel, NW Community Services, GMCconnexions, Wirral University Hospital Trust, Woodchurch High School, Energy Projects Plus, Smylie Ltd and Typhoo, among others.

If you would like to pay directly from your salary and your employer is not currently able to perform this deduction, your payroll department should contact the Credit Union to see if a payroll payment system can be established.

When Can I get a loan and how much am I entitled to?

If saving via an established payroll deduction scheme then members are eligible for a loan of up to 3 times the amount of their savings and can apply for a loan after one regular payment has been received.


saving via standing order then members need to make 3 consecutive monthly payments into their savings account. After this time members can then apply for a loan of 1.5 times their savings. When this first loan has been cleared and the member has shown consistency with payments, subsequent loans will be available at 2 times the value of their savings.

How do I apply for a loan or withdrawal of my savings?

Where eligible members can apply for a loan or withdrawal by contacting any of the Credit Union branches Monday to Wednesday and a cheque will be produced ready for collection on the Thursday of that same week. Cheques can also be posted to your home address if more convenient.

NB. Withdrawal of savings can only be made to the level of any outstanding loan balance.

NB. You must be at least 18 years old to apply for a loan.

How much interest will I pay?

The Credit Union offers low cost loans to its members and interest is based on a members personal circumstances. The standard rate of interest is between 12.68%APR and 26.8%APR. If a loan is paid off earlier than the agreed term then interest is allocated to the end of that weekly period and there are no early repayment fees.

The tables below show an example of the total amount to be repaid on loan amounts over varying time periods.

Example 1: Loan interest calculated at 12.68%APR

Category: Credit

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