Which loan is the best for you?

Date: 31 July 2023

Life can be full of surprises – good and bad. When you’re working hard but struggling to make ends meet, or have to suddenly find the cash for unexpected purchases, it can be tempting to resort to credit cards or short-term credit.

You might feel like there’s no alternative, but personal loans can actually be a better way to help you out of a difficult patch, providing you partner with a responsible lender who prioritises your financial wellbeing.

As a GMB Credit Union member, you have access to a range of fast, fair, and flexible loans.

We’re here to support you through challenging times without risking your financial health, so you can keep on track and maintain stability for you and your loved ones.

Read on for the lowdown on all of our loans to see which is the right choice for you.


Consolidation Loan

The Consolidation Loan may be for you if:

  • Multiple debts are causing you stress and anxiety
  • You want to simplify things with one easy payment
  • You’re ready to take control of your finances through some longer term planning
  • You have a good credit score
  • You’re happy to lock your GMB Savings Account as security for your loan

Bundle multiple debts into one simple, manageable payment with the Consolidation Loan.

You can borrow between £3,000 and £15,000, and you save money on interest compared to having multiple loans as you only pay interest on your decreasing loan value.

With interest rates for the Consolidation Loan between 9.4% and 26.8% APR, you have a maximum 84-month repayment term and you can make payments by direct debit weekly, monthly, or four-monthly.

The planned and stress reducing way to work your way towards a brighter financial future. Does this sound like a good move for you?

Find out more or apply here.


Family Loan

The Family Loan is perfect for you if:

  • You receive Child Benefit

  • You have a lower credit score or restricted income
  • You want to build a better credit rating
  • You’re looking for a loan which helps you budget and feel more organised
  • You want a revolving loan to make family life more manageable

The Family Loan is an affordable loan option for families and the repayments are secured by your Child Benefit payments.

You can borrow between £200 and £1200 to support your family’s growing and changing needs – it’s flexible and you can top up Family Loans while still building a better credit rating.

The Family Loan comes with an APR of 34.5% APR and you have 18 months to pay it back through your Child Benefit.

Think this might be a good option for you? Find out more and how to apply here.


Handy Loan

The Handy Loan is for you if:

  • You want to access affordable lower loan amounts
  • You want to avoid the pitfalls of other short-term credit providers

  • You have a need to borrow due to unexpected costs
  • You have a fair/good credit score and want to maintain it
  • You want to grow your savings pot

Our Handy loan does exactly what it says on the tin: it gives you a handy way to borrow money while ensuring that you are getting a fair deal.

As part of the agreement, you save a minimum of £10 a month to encourage good financial habits and build your savings.

It’s open to members over 18 and you can borrow between £200 and £2500 with an APR of 42.6%.

Pay it back over 36 months maximum – your repayments can be made weekly or monthly to suit your circumstances.

Learn more about the Handy Loan and how to apply here.


Member Loan

The Member Loan is ideal if:

  • You need funds fast for a big purchase
  • You want a personal loan you can pay off at your pace so it doesn’t adversley impact your everyday budgeting
  • You want to avoid risky lending options and need the security of a fair deal
  • You’re keen to build your savings
  • You have a good credit score

With larger amounts and longer payment terms available, the Member Loan is perfect for financing those bigger purchases.

Borrow between £2,501 and £20,000, depending on your eligibility and subject to a credit check – you have fixed repayments and can take up to 84 months to pay it back.

The Member Loan has an APR of between 6.2% and 26.8% and all members can apply.

Learn more about the Member Loan and how to apply here.


Save & Borrow Loan

The Save & Borrow Loan may be a good option for you if:

  • You’re on a low income and want to be better with money
  • You’re keen to improve your credit score over time with manageable repayments
  • You’re ready to start learning more about money and grow your confidence in managing your finances
  • You’re not looking for a quick fix – you are working towards a better financial future for yourself and your loved ones.

The Save & Borrow Loan from GMB Credit Union is fantastic for building a healthier relationship with money.

We’ll open a savings account for you as part of this process, and you’ll get into the habit of saving at least £25 a month for at least six months before borrowing anything.

This is a long-term plan to change your attitude and behaviour towards money and make sure you create habits you can stick to.

How much you can borrow is based on how much you have saved – you are eligible to borrow up to three times your savings amount, as long as it’s between £250 and £2,000.

The APR for this loan is 42.6% with a payback period of 12-36 months.

Find out more about the Save & Borrow Loan here.


Savings Secured Loan

The Savings Secured Loan is the one for you if:

  • You already have money in your GMBCU savings but don’t want to dip into them
  • You have other financial goals and you want to keep your savings at this time
  • You need repayments which are manageable.

Using your savings as security against your loan allows you to get great rates while still receiving an annual dividend on your savings with us.

With the Savings Secured Loan, you can take out a personal loan of £5,000 to £20,000 with a low-interest rate of 3.5% APR – plus, you have up to 84 months to pay it back.

This is possible because you secure your loan against your savings with us, so you can borrow an amount equal to or less than your savings amount.

When you take out a Savings Secured loan, you agree to keep saving at least £10 a month – one of the ways we keep your finances on track and support you to build healthy and sustainable money habits.

This way, you can unlock larger sums to fund big purchases or investments, without the need to dip into your savings pot and miss out on your annual dividend as a GMB Credit Union member.

Could this be an option for you? Find out more and how to apply here.


Top Up Loan

Our Top Up Loan could be for you if:

  • You already have a loan with us and you’ve paid at least half of it back
  • You want to stay in control of your finances but could benefit from a boost
  • You have a good credit score and you’d like to keep building on it
  • You need to keep it simple with one single, regular,affordable loan repayment

You can’t plan for everything, so sometimes one loan doesn’t quite cover your changing circumstances.

Choosing a Top Up loan from GMB Credit Union is the safe way to borrow a little extra without slipping into reckless spending and borrowing.

As a member, you can apply for up to three Top Up loans annually – we’ll do a credit search and may ask further questions to see if you’re eligible.

Take the fuss out of additional borrowing with a Top Up loan – it’s the hassle-free way to cover extra expenses without derailing your finances as you still have a single, manageable monthly payment.

Find out about the Top Up loan and see how to apply here.


Your financial wellbeing is our priority

Borrowing money can be simple, fair, and manageable if you choose a responsible lender with your financial wellbeing at its core.

GMB Credit Union is a supportive financial community driven by our passion to protect our members and help you live a comfortable, fulfilling life.

Savings from GMB Credit Union members are pooled enabling us to lend money to you at affordable rates. We assess loan aplications individually with a focus on what we believe you can afford to repay.

You can apply for all of our loans via our website. Remember, you only ever pay interest on your decreasing loan balance, so it’s the safest and most affordable way to access extra funds when you need them most.

Find more information about our different loan options here.