Saver Loan Policy

Product description

Minimum loan £300

Maximum loan £3,000

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 their affordability.

The maximum loan term is 5 years. The interest rate is 24% (APR 26.8%)


Terms and conditions:

  • 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 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.


Credit reference and fraud protection agencies

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.