Loans
Looking for a loan?
We offer a variety of loans to suit all our members needs!
From Standard loans, Family loan paid back with Child Benefit, Homeowner and Debt Consolidation
You can read more about our loans and their terms and conditions below.
Standard Loan
Starting from 12.9% APR
Our loans are available for new and existing members. They’re a great way to help with any unexpected bills, home updates or car costs. With affordable rates starting from 12.9% APR, our loans can help you get through a rainy day or a break away!
Here are some key points for our Standard Loan:
- The loans are available for both new and existing members.
- The loan must be repaid within 5 years.
- With APR rates starting from 12.9%
Family Loan
Starting from 12.9% APR
Our unique Family Loan is designed for Members that receive Child Benefit (CHB). If you’re feeling a little strapped for cash and receive the benefit, this loan could be the right choice for you.
The usual term for the loan is 12 months which makes it ideal for helping with costs of Christmas or special birthdays.
The loan has to be repaid by your Child Benefit and you would have to save a minimum of £5 per month into your savings (that’s £1 per week if you receive it weekly).
Here are some key points for our Family Loan:
- The loan has to be repaid by Child Benefit.
- You have to contribute to your savings, at a minimum of £1 per week.
- You are unable to access savings unless the loan is repaid in full.
- Maximum term of the loan is 5 years subject to status and terms and conditions apply.
- APR rates start from 12.9%
Homeowner Loan
7.9% APR
Are you a homeowner, looking for a low cost loan? We can help.
It’s a great way to pay for a home improvements, a new car or even a special holiday!
This loan is only available to members who have been homeowners for at least 3 years and been in employment for at least 3 years.
Here are some key points for our Homeowner Loan:
- You must be a homeowner for at least 3 years.
- Must be employed for at least 3 years.
- Have no adverse credit (e.g. CCJ’s, Defaults or Missed Payments)
- Loans start at £5,000 and go up to £15,000
- The loan can be used for any reason
- Maximum term 5 years
- APR 7.9%
Secured Loans
5.9% APR
Our secured loans work by you borrowing against your savings. For example, if you have £500 in your savings, you would be able to have a loan up to the value of £500.
This is a great way to have access to money, without you having to dip into your savings!
Here are some key points for our Secured Loans:
- Must have the exact amount in savings (excluding interest).
- Maximum term 7 years
- APR 5.9%
Debt Consolidation Loans
Starting from 17.9%
If you currently have outstanding credit with overdrafts, credit cards or loans we understand that keeping track of repayments at different rates throughout the month can be difficult to control. That’s why we offer an affordable loan, which you use to clear the outstanding balances and allow you one monthly repayment at a fixed rate.
Here are some key points for our Debt Consolidation Loan:
- Must provide proof of balance/settlement figures
- Loan has to be repaid within 5 years.
- APR starts from 17.9%
We also request that all borrows are to contribute a small amount into their ‘Attached Savings’. This is usually around £1, £2 or £3 per repayment. Your attached savings are locked away, until the loan is repaid. Helping you to save and move to a Secured Loan in the future.
Maximum Loan Term :
42.6%
42.6%
42.6%
This calculator is for illustrative purposes only, to give you, the borrower, an overview of the potential cost of borrowing. The Credit Union, or any of its staff, cannot be held responsible for any errors. Please note that this calculator only provides an indicative quote and actual repayments may vary.
There are three ways to apply for a loan
You can download the App
You can click the 'Apply for Loan' button on the Loan Calculator on our website and follow the instructions.
Or you can drop into the office (139 High Street, Merthyr Tydfil) and pick up a loan application form to complete and return to us.
We request 3 months bank statements with your loan application, you can submit this online (you will be prompted when applying), physical copies can be brought into the office or via email to: info@mtbcu.org.uk.
We also now offer Open Banking to all members that use internet banking. We can now send you a link to view your statements online in a secure way.
If you are not already a member, you will need to supply proof of ID such as driver’s license or passport and proof of your address, such as a utility bill or bank statement.
Loan applications are generally turned around in 48 hours although in times of high demand this may take longer.
Your application is then given to our Credit Committee. This is a panel of individuals, who will work together to make a decision on your application. When deciding they will take into account, your ability to repay the loan. They may also run additional credit checks, such as a Credit Agency Search.
You will receive a text message from us, when a decision has been made.
If you have been accepted for a loan; you will need to visit our office to sign the paper work.
We also ask every member who borrows, to save money into an attached savings.
This savings account cannot be accessed until the loan is paid off and helps you to save some extra cash once the loan has finished.
Our attached savings account, allow us to lend to other members, as you are borrowing from your fellow members’ savings.
There are many ways to ensure we receive your repayments.
One of the easiest methods is through standing order. This is something you can set up when signing your loan agreement.
We also offer repayments via; Cash, Faster Payments and Debit Card.
For a list of payments options please visit our "Payment Methods" tab above.
