Nottingham Credit Union launches family loan to combat payday lenders
18 Jan 19
A new loan product for young families has been launched by Nottingham Credit Union as an alternative to payday lenders.
The credit union’s family loans can be for any purpose and are available to Nottinghamshire families in receipt of child benefit. The loan can be from £100 to £600, repayable over a term of three to 12 months.
Jason Eaves, Manager at Nottingham Credit Union, said: “We know many families face unexpected bills or have to buy furniture or domestic appliances and will take on loans that cost more than they should. I want to make sure that young families in Nottingham and Nottinghamshire avoid the loan sharks, the high cost lenders and payday loans.”
The family loan has no arrangement fee or early repayment fee, and the interest rate is 3% per month (APR 42.6%). People who are not currently members of the credit union can apply – and they will need to become members before they draw the loan, if agreed. Applicants must be in receipt of child benefit for the duration of the loan and agree that this is deposited into their credit union account.
Jason added that: “Nottingham Credit Union exists to provide an alternative to high cost lenders. We aim to lend responsibly at reasonable rates and in a way that doesn’t exploit our members – and in particular members who are financially vulnerable”.