Think Before You Borrow
- All loan offers are made on the basis that any supporting documentation requested in writing is considered appropriate and satisfactory.
- All members must continue to save during a loan agreement. The minimum savings amount will be £10 monthly, or the savings amount agreed at the time of the loan.
- We have the right to restrict withdrawals from savings during the repayment period of a member loan. The level of secured savings will be agreed individually and outlined in the loan agreement and any supporting letter.
- We reserve the right to set off any household member or junior savings accounts against any outstanding loan for a member of that household.
- Members can deposit additional funds at any time to support a loan. These funds will be secured against the loan until it is fully repaid.
- We have the discretion to introduce a £15k lending ceiling for households which have multiple individual household memberships.
- Members can apply for top up loans. The maximum number of top up loans is at the discretion of the credit union and will normally be a maximum four per year.
- Members can make early repayment of the full outstanding loan, including any interest due, at no additional charge.
- Loans for annual events such as holidays, season tickets should normally be repaid over a maximum period of 12 months.
- Life cover on loans has an upper age limit of 70. For clarification members who are 70 or over when their loan is due to be fully repaid will not be eligible for life cover on their loans.
- We will make searches and share information with credit reference agencies to verify a member’s identity and suitability for loans.
- We reserve the right to offer members promotional loans. Terms and conditions will apply to these promotions.
- The interest rate applicable to loans will depend on individual circumstances, the loan amount and term agreed.
- If members do not fulfil the terms of their loan agreement, we may charge fees as follows. Unpaid direct debit fee £12.50. Arrears administration fees/letter charge £12.50. Legal fees at cost in respect of fees incurred in recovering an outstanding member loan.
- Missing agreed loan repayments could have serious consequences and make obtaining credit more difficult in the future. Failure to repay an outstanding loan will result in court action to recover the full amount of the outstanding debt including costs. This could involve CCJ’s, attachment of earnings orders, petition for bankruptcy and may include the seizure of assets/property at the discretion of the court appointed trustee and will affect your credit rating.
- The Credit Union loan policy is subject to change by the Credit Union Board. Members will be advised of any changes.
- Members have the right to appeal in writing against a loan decision to the Credit Union Board. The Boards decision is final in such matters.
Save & Borrow Loans - General Terms and Conditions
Save & Borrow Loan (S&B)
- GMB Credit Union is a responsible lender and is keen to support the loan requirements of all GMB members. If members have a poor credit rating, we offer S&B loans as a means of rebuilding a credit rating and progressing to mainline Credit Union borrowing.
- Minimum loan: £100
- Maximum loan: £1,500
Who can apply
- Members of the GMB.
- Individuals 18 years or older.
loans are repaid by direct debit
- Maximum 30 months. We always suggest repayment over the shortest period possible.
- Members can repay their loan in full at any time without penalties.
Interest and Charges
- Interest Rates from 26.8% APR to 42.6% APR subject to status.
- There are no charges or fees on the S&B loan. We aim to save members money on smaller, short term borrowings and provide a cost effective alternative to Payday loans.
- Savings and loan repayments will be collected together on one direct debit
- Minimum savings £10.00 pm.
- Minimum savings period before first loan is three months.
- Loans are either two or three times members savings balance.
- Loans may be extended to five times savings balance as members establish a track record with the Credit Union and improve their credit rating.
- Member Savings are retained as security against the S&B loan. Withdrawals can only be made when the savings balance exceeds the loan balance.
- Members receive an annual dividend on savings; currently 2.1%
Top Up loans
- At the Credit Unions discretion.
- Members can apply to top up their existing loan after four months.
- Maximum of four top ups in a year.
Credit View - Free for life Credit Report
- We credit reference check loan applications. Your credit score has a direct impact on your financial wellbeing and we strongly recommend that you view and manage your credit report by registering with gmbcu.creditview.co.uk.
- We are regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
- Firm Reference number 213550
Telephone: 0161 486 1777
Apply Online: www.gmbcreditunion.com