Loan T&Cs
Welcome Loan T&Cs
- Minimum loan: £150
- Back to School Loan Maximum loan: £200
- Welcome Loan maximum loan: £700
- Minimum term: 3 months
- Maximum term: 2 years
- Annual interest rate is 36% (APR 42.6%)
- Interest is charged on the reducing balance
- Can be refinanced after 4 months
- No hidden fees or charges
This product is designed to offer a warm welcome to credit union borrowing. It is not linked to savings, although we encourage you to save as you borrow. Building your Locked Savings gives you the opportunity to apply for Saver Loans in the future. We work with all new members, one-to-one, over the first 12 months of membership. We want you to reap the full benefits of your local credit union and find you personal credit and savings level.
- You must be a member of South Manchester Credit Union to be eligible to apply for a Welcome Loan.
- You must be aged between 18 years and 69 years to apply for a Welcome Loan.
- You must complete the loan application process and provide all information requested for a full loan assessment. An external credit check will be undertaken.
- Once a Welcome Loan offer is made, you will sign the Loan Agreement if you accept the offer and agree with the loan terms.
- You agree to repay the loan to South Manchester Credit Union and pay interest on the unpaid balance at the agreed rate. Interest will be charged on the outstanding balances on a daily basis.
- You agree to make payments at the agreed frequency and will continue to do so until the loan and interest have been repaid in full. If you miss a repayment, you will incur additional interest on the loan. The first payment will be due on the date agreed in the Loan Agreement.
- If you don’t make a repayment on time we will contact you to find out why. The interest on your agreement is based on you paying on time. If you miss payments, you may end up paying more interest than on the agreement. If you stop paying your loan we can ask you to repay the whole loan at once. If you stop repaying your loan and we have to take steps to contact you for repayments, we may add the cost of chasing you to the amount owed to us.
- If your loan is in arrears we have the right to apply any savings held in your Locked Savings account towards the arrears due.
- You have the right to settle the Loan Agreement early, after the 3 month minimum term, at any time by paying in full the balance of the loan plus any unpaid interest outstanding. South Manchester Credit Union will, on request, provide you with a written statement of the sums which have been paid and which remain outstanding under the Loan Agreement.
- You agree to save at least £2 per week to build your savings with South Manchester Credit Union. The savings you accumulate in this way, whilst you are repaying a Welcome Loan, will be held in your Locked Savings account. Any additional savings will be placed in your Open Savings account from which a monthly savings withdrawal is permitted. Once your Locked Savings balance exceeds your loan balance, the difference may be withdrawn.
- During the term of the loan, you agree that you will inform us immediately if you give or receive notice of termination of employment, change of address or any other personal circumstance which will affect your ability to make the agreed loan repayments, so that alternative methods of payment may be arranged.
- A first Welcome Loan may be refinanced after at least 16 weeks of loan repayments as per the Loan Agreement.
We may use credit reference and fraud prevention agencies to help us make decisions. What we do and how both we and credit reference and fraud prevention agencies will use your information is explained on our privacy policy page.
Family Loan T&Cs
- If you have 1 child, you can apply for: £300
- If you have 2 children, you can apply for: £500
- If you have 3+ children, you can apply for: £700
- Repaid with Child Benefit
- Minimum term: 3 months
- Maximum term: 2 years
- Annual interest rate is 36% (APR 42.6%)
- Interest is charged on the reducing balance
- Can be refinanced after 4 months
- No hidden fees or charges
This product is perfect for new account holders that receive Child Benefit. It is not linked to savings, although we encourage you to save as you borrow. Building your Locked Savings gives you the opportunity to apply for Saver Loans in the future. We work with all new members, one-to-one, over the first 12 months of membership. We want you to reap the full benefits of your local credit union and find you personal credit and savings level.
- You must be a member of South Manchester Credit Union to be eligible to apply for a Family Loan.
- You must be aged between 18 years and 69 years to apply for a Family Loan.
- You must complete the loan application process and provide all information requested for a full loan assessment. An external credit check will be undertaken.
- Once a Family Loan offer is made, you will sign the Loan Agreement if you accept the offer and agree with the loan terms.
- You agree to repay the loan to South Manchester Credit Union and pay interest on the unpaid balance at the agreed rate. Interest will be charged on the outstanding balances on a daily basis.
- You agree to make payments at the agreed frequency and will continue to do so until the loan and interest have been repaid in full. If you miss a repayment, you will incur additional interest on the loan. The first payment will be due on the date agreed in the Loan Agreement.
- If you don’t make a repayment on time we will contact you to find out why. The interest on your agreement is based on you paying on time. If you miss payments, you may end up paying more interest than on the agreement. If you stop paying your loan we can ask you to repay the whole loan at once. If you stop repaying your loan and we have to take steps to contact you for repayments, we may add the cost of chasing you to the amount owed to us.
- If your loan is in arrears we have the right to apply any savings held in your Locked Savings account towards the arrears due.
- You have the right to settle the Loan Agreement early, after the 3 month minimum term, at any time by paying in full the balance of the loan plus any unpaid interest outstanding. South Manchester Credit Union will, on request, provide you with a written statement of the sums which have been paid and which remain outstanding under the Loan Agreement.
- You agree to save at least £2 per week to build your savings with South Manchester Credit Union. The savings you accumulate in this way, whilst you are repaying a Family Loan, will be held in your Locked Savings account. Any additional savings will be placed in your Open Savings account from which a monthly savings withdrawal is permitted. Once your Locked Savings balance exceeds your loan balance, the difference may be withdrawn.
- During the term of the loan, you agree that you will inform us immediately if you give or receive notice of termination of employment, change of address or any other personal circumstance which will affect your ability to make the agreed loan repayments, so that alternative methods of payment may be arranged.
- A first Family Loan may be refinanced after at least 16 weeks of loan repayments as per the Loan Agreement.
We may use credit reference and fraud prevention agencies to help us make decisions. What we do and how both we and credit reference and fraud prevention agencies will use your information is explained on our privacy policy page.
Lifesaver Loan T&Cs
- Minimum loan: £150
- Maximum loan: £300
- Minimum Loan term: 3 months
- Maximum term: 2 years
- Must be referred by Great Places
- Annual interest rate is 36% (APR 42.6%)
- Interest is charged on the reducing balance
- This loan cannot be refinanced
- No hidden fees or charges
- 10% of the loan value will be paid into the members savings once the loan is settled
The Lifesaver Loan is a product that’s been designed with Great Places. Its goal is to help improve the quality of life for their customers. It is not linked to your savings, although we encourage tenants to save.
This loan can be applied for once the total balance has been repaid.
Once the loan has been repaid, 10% of the loan value will be deposited into your credit union savings. E.g. When a £300 loan is repaid, £30 will be deposited into your savings.
- You must be a member of South Manchester Credit Union to be eligible to apply for a Lifesaver Loan.
- You must be aged between 18 years and 69 years to apply for a Lifesaver Loan.
- You must complete the loan application process and provide all information requested for a full loan assessment.
- South Manchester Credit Union hold the right to conduct a credit check on any Lifesaver Loan application.
- Once a Lifesaver Loan offer is made, you will sign the Loan Agreement if you accept the offer and agree with the loan terms.
- You agree to repay the loan to South Manchester Credit Union and pay interest on the unpaid balance at the agreed rate. Interest will be charged on the outstanding balances on a daily basis.
- You agree to make payments at the agreed frequency and will continue to do so until the loan and interest have been repaid in full. If you miss a repayment, you will incur additional interest on the loan. The first payment will be due on the date agreed in the Loan Agreement.
- If you don’t make a repayment on time we will contact you to find out why. The interest on your agreement is based on you paying on time. If you miss payments, you may end up paying more interest than on the agreement. If you stop paying your loan we can ask you to repay the whole loan at once. If you stop repaying your loan and we have to take steps to contact you for repayments, we may add the cost of chasing you to the amount owed to us.
- If your loan is in arrears we have the right to apply any savings held in your Locked Savings account towards the arrears due.
- You have the right to settle the Loan Agreement early at any time after the 3 month minimum term by paying in full the balance of the loan plus any unpaid interest outstanding. South Manchester Credit Union will, on request, provide you with a written statement of the sums which have been paid and which remain outstanding under the Loan Agreement.
- We encourage you to saver whilst you’re repaying your loan.
- During the term of the loan, you agree that you will inform us immediately if you give or receive notice of termination of employment, change of address or any other personal circumstance which will affect your ability to make the agreed loan repayments, so that alternative methods of payment may be arranged.
- Once a Lifesaver Loan has been repaid, you can asked to be referred by Great Places.
- When the loan is been repaid, 10% of the loan balance will be paid into your credit union savings account
We may use credit reference and fraud prevention agencies to help us make decisions. What we do and how both we and credit reference and fraud prevention agencies will use your information is explained on our privacy policy page.
Saver Loan T&Cs
- Minimum loan: £300
- Maximum loan £3,000
- Minimum loan term: 3 months
- Maximum loan term: 5 years
- Annual interest rate is 24% (APR 26.8%)
- Interest is charged on the reducing balance
- No hidden fees or charges
This loan product is linked to savings and is designed for members who have a Locked Savings balance of more than £100. This product can be refinanced. Each member can apply for a refinance up to 4 times in our financial year which runs from 1st October to 30th September. The minimum refinance is £150. Each member has a bespoke Credit Level for their Saver Loan which is based on their savings record, credit history, and an income/expenditure assessment.
- You must be a member of South Manchester Credit Union to be eligible to apply for a Saver Loan.
- You must be aged between 18 years and 69 years to apply for a Saver Loan.
- You must complete the loan application process and provide all information requested for a full loan assessment.
- Once a Saver Loan offer is made, you will sign the Loan Agreement if you accept the offer and agree with the loan terms.
- You agree to repay the loan to South Manchester Credit Union and pay interest on the unpaid balance at the agreed rate. Interest will be charged on the outstanding balances on a daily basis.
- You agree to make payments at the agreed frequency and will continue to do so until the loan and interest have been repaid in full. If you miss a repayment, you will incur additional interest on the loan. The first payment will be due on the date agreed in the Loan Agreement.
- If you don’t make a repayment on time we will contact you to find out why. The interest on your agreement is based on you paying on time. If you miss payments, you may end up paying more interest than on the agreement. If you stop paying your loan we can ask you to repay the whole loan at once. If you stop repaying your loan and we have to take steps to contact you for repayments, we may add the cost of chasing you to the amount owed to us.
- If your loan is in arrears we have the right to apply any savings held in your Locked Savings account towards the arrears due.
- You have the right to settle the Loan Agreement early, after the 3 month minimum term, at any time by paying in full the balance of the loan plus any unpaid interest outstanding. South Manchester Credit Union will, on request, provide you with a written statement of the sums which have been paid and which remain outstanding under the Loan Agreement.
- You agree to keep at least the equivalent of 33% of your approved loan balance in your Locked Savings at any time. Any savings over 33% of your loan balance will be placed in your Open Savings account from which a monthly savings withdrawal is permitted.
- During the term of the loan, you agree that you will inform us immediately if you give or receive notice of termination of employment, change of address or any other personal circumstance which will affect your ability to make the agreed loan repayments, so that alternative methods of payment may be arranged.
We may use credit reference and fraud prevention agencies to help us make decisions. What we do and how both we and credit reference and fraud prevention agencies will use your information is explained on our privacy policy page.
Smart Loan T&Cs
- Minimum loan: £1,000
- Maximum loan £15,000
- Minimum loan term: 3 months
- Maximum loan term: 5 years
- Annual interest rate for loans between £1,000 and £2,999 is 24% (26.8%)
- Annual interest rate for loans between £3,000 and £15,000 is between 4.9% (APR 5%) and 13.2% (APR 14%)
- Interest is charged on the reducing balance
- No hidden fees or charges
This loan product is designed for new and existing members and is not linked to savings. However, members are encouraged to continue to save whilst repaying their loan. This loan is offered to cover the expense of larger items such as a car, special holiday or home improvements. It may not be refinanced.
- You must be a member of South Manchester Credit Union to be eligible to apply for a Smart Loan.
- You must be aged between 18 years and 69 years to apply for a Smart Loan.
- You must complete the loan application process and provide all information requested for a full loan assessment. An external credit check will be undertaken.
- Once a Smart Loan offer is made, you will sign the Loan Agreement if you accept the offer and agree with the loan terms.
- You agree to repay the loan to South Manchester Credit Union and pay interest on the unpaid balance at the agreed rate. Interest will be charged on the outstanding balances on a daily basis.
- You agree to make payments at the agreed frequency and will continue to do so until the loan and interest have been repaid in full. If you miss a repayment, you will incur additional interest on the loan. The first payment will be due on the date agreed in the Loan Agreement.
- If you don’t make a repayment on time we will contact you to find out why. The interest on your agreement is based on you paying on time. If you miss payments, you may end up paying more interest than on the agreement. If you stop paying your loan we can ask you to repay the whole loan at once. If you stop repaying your loan and we have to take steps to contact you for repayments, we may add the cost of chasing you to the amount owed to us.
- If your loan is in arrears we have the right to apply any savings held in your Locked Savings account towards the arrears due.
- You have the right to settle the Loan Agreement early, after the 3 month minimum term, at any time by paying in full the balance of the loan plus any unpaid interest outstanding. South Manchester Credit Union will, on request, provide you with a written statement of the sums which have been paid and which remain outstanding under the Loan Agreement.
- You agree to save at least £20 per month to build your savings with South Manchester Credit Union. The savings you accumulate in this way, whilst you are repaying a Smart Loan, will be held in your Locked Savings account. Any additional savings will be placed in your Open Savings account from which a monthly savings withdrawal is permitted. Once your Locked Savings balance exceeds your loan balance, the difference may be withdrawn.
- During the term of the loan, you agree that you will inform us immediately if you give or receive notice of termination of employment, change of address or any other personal circumstance which will affect your ability to make the agreed loan repayments, so that alternative methods of payment may be arranged.
We may use credit reference and fraud prevention agencies to help us make decisions. What we do and how both we and credit reference and fraud prevention agencies will use your information is explained on our privacy policy page.
Secured Loan T&Cs
- Minimum loan: £150
- Maximum loan £15,000
- Minimum loan term: 3 months
- Maximum loan term: 5 years
- Annual interest rate is 9% (APR 9.4%)
- Interest is charged on the reducing balance
- No hidden fees or charges
When you take out a Secured Loan your savings are used as security meaning you must keep your Locked Savings balance equal to the balance of your loan. The reward for locking in your savings is one of our most attractive interest rates.
- You must be a member of South Manchester Credit Union to be able to apply for a Secured Loan.
- You must be aged between 18 years and 69 years.
- You must complete the loan application process and provide all information requested for a full loan assessment.
- Once a Secured loan offer is made, you will sign the Loan Agreement if you accept the offer and agree with the terms.
- You agree to repay the loan to South Manchester Credit Union and pay interest on the unpaid balance at the agreed rate. Interest will be charged on outstanding balances on a daily basis.
- You agree to make payments at the agreed frequency and will continue to do so until the loan and interest have been repaid in full. If you miss a repayment, you will incur additional interest on the loan. The first payment will be due on the date agreed in the loan agreement.
- If you don’t make your payments on time we will contact, you to find out why. The interest on your agreement is based on you paying on time. If you miss payments, you may end up paying more interest than on the agreement. If you stop paying your loan we can ask you to repay the whole loan at once. If you stop repaying your loan and we have to take steps to contact you for repayments, we may add the cost of chasing you to the amount owed to us
- If your loan is in arrears we have the right to take any savings you have towards the repayment.
- You have the right to settle the Agreement early, after the 3 month minimum term, at any time by paying in full the balance of the loan plus any unpaid interest outstanding. South Manchester Credit Union will, on request, provide you with a written statement of the sums which have been paid and which remain outstanding under the agreement.
- You agree to keep at least the equivalent of your outstanding loan balance in your savings at any time. Anything over the outstanding loan balance can be withdrawn.
- You agree that you will inform us immediately if you give or receive notice of termination of employment, change of address or any other circumstance which will affect your ability to make the agreed loan repayments, so that alternative methods of payment may be arranged.
We may use credit reference and fraud prevention agencies to help us make decisions. What we do and how both we and credit reference and fraud prevention agencies will use your information is explained on our privacy policy page.
