How can I take out a loan?

How can I take out a loan?

Members are required to save regularly with the credit union for a minimum period of six months. They will then be eligible to apply for a loan. The amount of money you can borrow will depend upon the value of your savings. Repayment terms will be worked out by the credit union Credit Committee following the member’s financial circumstances.

The Credit Union has been in existence since 1984.  All loans are subject to the individual member submitting a complete and accurate loan application to support their capacity to repay a loan from the ACU.

Members must supply: 

  • Details of current income and expenditure
  • Details of current indebtedness to other creditors and existing ACU loans
  • Declaration as to the accuracy of the information submitted
  • Initial loans of up to £7,000 are available to all qualifying members subject to their capacity to repay. Larger loans up to £20,000 can be considered on request.

The loans are charged at 1% on the outstanding loan decreasing the balance each month (APR 12.68%).

As with all credit union loans, there are no penalties for early repayment after three months.

The Adventist Credit Union only charges 1% on the outstanding balance each month – equivalent to 12.68% APR or Compound Interest (that is the total amount of interest paid over one year) of 6.5%. So, for example, if £100 is borrowed (repayment over 12 months), a total of £106.50 is repaid.

The officers of the credit union decide the rate of interest charged on your loan. By law, this cannot be more than 1% each month on the reduced balance.  At 1% this is equivalent to an Annual Percentage Rate (APR) of 12.68%.

By law, every credit union must maintain financial reserves to cover any loan not repaid in full. In addition, there is a national fund to which all credit unions subscribe for further protection.