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Loans


Types of Loan

2 Shires Credit Union offers three types of loans, SAVER loans, SMART loans and Family Loans.

Click here to apply for a loan online.

Please note that only people who live or work in the Districts of Bassetlaw or Bolsover or Warsop, Mansfield Woodhouse, Ollerton or Edwinstowe can apply for a loan

Saver loans

  • Interest rate is 12.7% APR
  • Interest calculated at 1% per month on outstanding balance
  • Saved regularly for at least 8 weeks
  • Twice level of savings for first loan
  • No hidden charges for early repayment

S.M.A.R.T Loans

  • Interest rate is 42.6% APR
  • Interest calculated at 3% per month on outstanding balance
  • Based on Income & Expenditure
  • No hidden charges for early repayment

Family Loans

  • Interest rate is 26.8% APR
  • Interest calculated at 2% per month on outstanding balance
  • Based on Income & Expenditure
  • Repayments by Child Benefit
  • No hidden charges for early repayment

Loan Applications

The Credit Union will consider loan applications from members for any purpose. Each application is treated in the utmost confidence and will be considered on its own merits. It is credit union policy to meet the borrowing requirements of as many members as possible.

Applications for loans are made on a standard loan application form. Loans can be applied for by calling to our office, by telephone or via the web site. Our staff will give you any assistance required. Loans will then be considered by the Credit Committee.

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 members record of savings and loan repayments, as well as ability to repay. Once the loan is granted the member will be asked to complete a loan agreement, which is a legally binding document being a promise to repay the loan, and to commit to regular repayments.

Planning and managing repayments

Credit unions are 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. 5 years is currently the maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the credit union, which 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 clearing your loan quicker than agreed.

Interest on credit union loans

There a number of ways that you can repay your loan including:

  • Cash (over the counter at our office in Worksop or at any local community branch)
  • Standing order
  • Payroll deduction (participating employers - ask for details)
  • Child Benefit
  • DLA (smaller amount)
  • Carers Allowance

By law credit unions are restricted on the interest rate they can charge. We do not charge any more than 3% per month on the reducing balance of a loan. This represents an interest rate of 42.6% APR (Annual Percentage Rate). Credit unions do not charge fees or transaction charges. The Credit Union is currently offering competitive rates. View our loan calculator to see how reasonable a credit union loan could be. We also have regular promotional rates of interest. 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.

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2Shires Credit Union Tel: 01909 500575 Email: info@2shires.org.uk Web: http://www.2shires.org.uk
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority
FCA & PRA FRN: 213893