Loans

Merthyr Tydfil Borough Credit Union Ltd.

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Product Summary

Please use our Loan Repayment Calculation Tool to obtain an indication of the cost of a Credit Union Loan.

The Credit Union will consider loan applications from members for any worthwhile 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, depending on the available funds.

Your loan application

In deciding whether or not to grant the loan, the Loan Officer or Credit Committee will take into account the member’s 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.

Making 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. 3 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, who 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 our loans

The Credit Union currently charges 1% per month (for Members who SAVE regularly with us) on the reducing balance of a loan. This represents an interest rate of 12.68% APR (Annual Percentage Rate).

Other Loans, such as, Fair Finance Loans may also be available for applicants who have not established a savings record with the Credit Union - £600.00 MAXIMUM - at 2% per month on the reducing balance of a loan. This represents an interest rate of 26.82% APR. Credit unions do not apply fees or transaction charges. Since the interest is calculated only on the outstanding balance of the loan, you will pay even less - if you repay the Loan in a shorter time than planned.