Apply for a loan
Can I apply?
Whether employed or in receipt of benefits, you can apply with us. As a responsible lenders we have to check that you can afford the repayments and have a good history of repaying your debts. However, we are more understanding about financial problems and poor credit than most lenders.
We look at all circumstances and consider more than just your credit score. We promote responsible lending and all loans are based on your ability to repay. The maximum loan we currently offer is £15,000.
We offer Personal Loans for a variety of purposes – whether that be a loan for your dream holiday, wedding, a new car, home improvements or electrical goods. However, we cannot currently offer business or property loans.
There are some other occasions where we cannot lend, for instance where someone is in an active Debt Relief Order, Individual Voluntary Arrangement or Bankruptcy. Borrowers must be over 18 and be able to demonstrate that they can afford repayments.
We don’t currently offer loans to anyone with an income lower than £130 per week altogether.
When can I apply?
If you’ve never applied with our credit union before then you can apply straight away!
If you have applied with us before then we ask that you wait at least 6 months before applying again.
How long does it take to get a decision?
When assessing our loans we perform some checks first of all to help us get an idea of your circumstances. We start off with checking affordability and we credit score all of our applications. As soon as these checks are made, a member of our loans team will review this during working hours and, if we feel we require them, we may ask that you provide some documents in support of your application.
While we do credit score our applications, this isn’t the only thing we consider when making our decisions. When looking at loans we consider a number of factors including:
- Affordability – Income / Expenditure
- Credit history (existing defaults, CCJs, DROs, IVAs and also debts you’re paying off well)
- Length at current address and addresses in the last 3 years
- Length of time served in current employment (if applicable)
- Existing and outstanding debts, their APR, value and length of time you have had the debt and over-the-limit balances
- Any history with us (both Savings and Loans)
This process on average takes us around 1-2 working days (usually dependant on how soon we receive supporting documents), at which time we will get back to you with our decision and how to proceed going forward.
How much interest will I pay?
We will always offer you the best loan rate that we can. Our rates are capped which makes them considerably cheaper than some lending options, but we offer lower rates for people who pay us through Payroll or who are Homeowners. For more info on our typical APRs, see our Loans page.
We charge interest only on your reducing balance. That means the sooner you repay the less interest you will pay. There are no charges or additional fees for early repayment of loans, either through making larger monthly payments or one off lump sums. We only charge you for the outstanding balance, which is better for your pocket.
Can I repay my loan early?
You can make extra repayments towards your loan or settle your loan early if you want to – this will save on the total interest that you will pay back and we charge no fees for this.
If you require a settlement figure for your loan then please get in touch with NLCU directly and we will be able to provide you with this – our interest is calculated daily, so you will require the figure on the day you are due to pay.
For the bank details to make a payment toward your loan balance, please get in touch with the credit union.
How do I apply?
To apply, you need to complete our loan application form – online, by mobile app or on paper (in branch or by post). We usually ask that you provide 3 months bank statements and proof of your income in order to get the best idea of your current situation as part of this.
If applying on paper, we ask that you always provide these documents with your application, to make sure there are no delays in getting a decision back to you.
Having difficulty repaying your loan?
Some of our members experience difficulty repaying their loans due to unforeseen circumstances. Please contact us as soon as possible, and we will do all we can to try to help. We will review your income and expenditure and may restructure your loan if necessary.
We have many members who we support in this way and, once you are back on your feet, you can borrow again from us if you want.
If you need to speak to us about making payments to your loan, please contact us on:
Telephone: 0330 004 0842 opt. 2 (weekdays 10am-3pm)
If there has been a change in circumstances that could affect your repayments then let us know. Remember, missed payments can affect your credit score and your standing with the credit union. The sooner you let us know of any problems, the better.