- You must be a member of Watford Credit Union and over 18 to apply for a loan.
- In general, before making a loan application you need
to save regularly over at least 13 weeks – ideally by paying
approximately the same amount of money per week or month into your
share (i.e. savings) account.
- After the initial 13 weeks, you can at any time apply
for a loan of no more than 3 times the amount of your savings (shares),
with an absolute maximum loan of £10,000.
- Emergency loans will also be considered. Proof of the
nature of the emergency will be required. If the Credit Committee
(and/or the Loans Officer) is satisfied that the money is required for
a genuine emergency, then a loan (maximum £500) can be granted even if
you do not meet the standard 13 weeks’ savings requirement and/or you
need to borrow more than 3 times your share balance.
- All loans must be paid back within a maximum of 3
years. The interest charged is 1% per month on the decreasing balance
of the loan. (12.7% APR)
- A Loan Application form download here or from Credit Union
office must be completed for each loan applied for, including details
of your current income and expenditure.
- When you apply for a loan, the Credit Committee
(and/or the Loans Officer) will assess your credit worthiness and your
ability to repay the loan. This could involve an interview, either
face-to-face or over the phone. Evidence of your income and your
expenditure will be asked for. Pay slips, proof of benefits and bank
statements covering the last 3 months will be required. Proof of
eligibility to remain in the UK for the length of the loan may be
- You will be encouraged to save, even if only a small
amount, whilst repaying your loan.
- All loans are subject to availability of funds and at
the discretion of the Credit Committee. The excess of loan balance over
share balance for any member will not exceed 5% of the credit union's
- The Credit Control Officer follows up all loan
repayments that fall into default and if necessary the credit union
will start a process of legal action. Any related charges incurred by
the credit union can be added to the amount owing by the defaulter.
- If you need help filling in the loan application form
or if you have any queries, you can leave a message at the office
asking to speak to a member of the Credit Committee.
- A decision on a loan application can usually be made
within 3-7 working days.
- On receipt of a loan, you must sign the loan
agreement, which is a legal document in which you undertake to pay the
amounts specified by the dates specified. There is no penalty for
repaying extra amounts at any time.
- You can apply for a second loan if at least 50% of
the existing loan has been paid off.
- If in any one calendar month you do not pay enough to
cover both an agreed loan repayment and an agreed deposit into your
share account (i.e. savings), any amount you do pay will be used first
towards the loan repayment and then any surplus will be paid into your
- Agreed loans are normally paid by BAC's, if you
would prefer another method of payment, please raise this with the
Credit Committee when applying for the loan.
Loan application form Free loan protection and life savings information
- While you are repaying a loan, and if you are not in
arrears, you may withdraw money from your share account (savings) as
long as your share balance does not as a consequence fall below
one-third of your current loan balance. The Board of Directors may
agree that these conditions can be waived, if exceptional circumstances