MCCU - Fast Track Loan Account

Regardless of how long you have been a member or how much you have saved with us, you can now apply to take out a loan. We call these Fast Track Loans.

We have to put you in a higher risk category because we do not know as much about you as our existing saver members, and because your loan is not backed by savings. In order to safeguard our members' money, we charge a somewhat higher interest rate of 2% per month on the outstanding balance of your loan. The maximum loan that we will consider is £600.

Examples:

Loan amount	Repayment period	Weekly repayment	Total Interest	Monthly repayment	Total Interest
£100	One year	2.21	13.56	9.79	12.94
£500	Two years	6.15	134.38	26.48	134.08

So that customers can compare one lender with another, all licenced lenders are required to state their Annual Percentage Rate (APR), which is a standardised calculation taking into account all interest, fees and charges which apply to the loan.

Our APR for Fast Track Loans is 26.8%, which compares very favourably with other lenders of small loans. For example, a prominent alternative lender typically charges an APR of 177%. A loan of £500 over 104 weeks from this company would typically require a weekly repayment of £11.38. You would repay a total of £1,180, whereas a Fast Track loan from the Credit Union would have cost only £6.15 per week and have total repayments of only £634, so with us you would pay £546 less over the life of the loan.

We will ask you for fill in an application form containing information about your financial circumstances. We will require documentary proof of your income such as payslips or bank statements. We will also take out a credit report, for which we charge an administration fee of £10 which may be paid in advance or can be added to your loan.

Applications are considered by a Credit Committee which meets weekly. All loans approved will normally be available for collection from the next day that we are open.

Loans are granted on the basis of your credit score and credit report, how long you have been a member, your savings record, your capacity to repay and according to the Loans Policy of the Credit Union.

Repayments can be made at local collection points, by Standing Order or, if your employer runs this scheme, by payroll deduction. The repayment period can be as long as 5 years and is negotiated with you to meet your own capabilities and the purpose of the loan.

You will be required to sign a legally binding agreement. Loans are funded by other members' savings, so failure to repay would lead to legal action being taken against you.

We take out insurance to repay the loan in the event of your death, all at no extra cost to you.

There are no hidden fees or costs involved in transactions with the Credit Union. No penalty is charged for early repayment.

Loan Application forms are available for download here or from any branch.

To start the application process, you will need to bring the form into a branch together with proof of your income.