A new loan product for young families has been launched by Nottingham Credit Union as an alternative to expensive payday lenders.
The credit union’s family loans can be for any purpose and are available to Nottinghamshire families in receipt of child benefit. The loan can be from £100 to £600, repayable over a term of three to 12 months.
Jason Eaves, manager at Nottingham Credit Union, said: “Many families will take on loans that cost more than they should. I want to make sure that young families in Nottingham and Nottinghamshire avoid the loan sharks, the high cost lenders and payday loans.”
The family loan has no arrangement fee or early repayment fee, and the interest rate is 3% per month (APR 42.6%). People who are not currently members of the credit union can apply – and they will need to become members before they draw the loan, if agreed. Applicants must be in receipt of child benefit for the duration of the loan and agree that this is deposited into their credit union account.
The Nottingham Credit Union started in 1992 and has offices on Maid Marian Way, Nottingham and Clumber Street, Mansfield.
“Nottingham Credit Union exists to provide an alternative to high cost lenders. We aim to lend responsibly at reasonable rates and in a way that doesn’t exploit our members – and in particular members who are financially vulnerable,” added Mr Eaves.
Applications can be made online at www.nottinghamcu.co.uk or in branch at Maid Marian Way, Nottingham or Clumber Street, Mansfield. Applications will be assessed and credit scored.