Once you have been a member for three months, have a minimum number of shares and you are over 18 years old, you can apply for a loan. The Loans Committee will look at your savings record and your ability to repay when deciding whether or not to grant a loan. The maximum loan we provide is £5,000, repayable over 3 years.

You can obtain a low-cost loan, with interest rates of between 1% & 3% per month added to the outstanding balance. The actual interest rate depends on the size of the loan. To see which rates apply go to current interest rates.

There are no hidden fees or transaction charges and no penalty for paying a loan off early. This is ideal for paying for holidays, cars, home improvements, Christmas presents, or make repayments on existing debts such as credit cards (larger loans may be repaid over a period up to 36 months). To see an explanation of how the interest charges are calculated take a look at the page on interest rates explained.

Click below to use the Loan Calculator to get an idea of how much your loan might cost.

How do I apply for a loan?

Just fill in a Loan Application form which can be obtained at any collection point, or you can download a form from this website. Click here on Loan Application form which you can then print out. Send your completed form to Rugby Credit Union (see Contacts for the address) and your application will be considered by the Credit Committee. You will normally be advised of the outcome within 10 days, but in an emergency the Committee may be able to make a decision sooner. Your loan will normally be paid to you by cheque or by electronic bank transfer, but cash loans are possible in certain circumstances.

What happens if you get behind with your loan payments?

Initially you will receive a warning letter, because it’s possible your bank has not processed a standing order payment, or there is some other explanation as to why your payment has not come through to us. Being a credit union we can be sympathetic if our members have a problem repaying a loan. In that case we ask them to come and see us so that we can find some way to help – for example, repaying the loan over a longer period. However, if you do not respond we will take appropriate action through the courts.Remember, a credit union is not bank, but a savings & loans cooperative. Thus your loan will have been provided through members’ savings – we have no other source of capital – and the members expect the credit union to take whatever action is necessary to recover their savings.

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