• 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 £5000.
  
  
• 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 standard form (available from the 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 might be asked for.
  
  
• 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 total assets.
  
  
• 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 share account.
  
  
• Agreed loans are normally paid by cheque – if you would prefer another method of payment, please raise this with the Credit Committee when applying for the loan.
  
  

• 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 apply.

           
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