Frequently Asked Questions (FAQ's)

Lending FAQ's

• How long does it take to apply for a loan?
  • We aim to make an initial loan decision on the next working after receiving a loan application.
  • However, if we need further information, we still aim to complete this within five working days from receipt of the information requested
  • If you need to open an Engage Current Account to provide a means to credit your repayments (and access the balance of a benefit or salary credit) this is usually processed after a loan decision has been made and takes around five working days.
  • Evidence of repayment arrangements will need to be received before the loan is issued, if you are a new borrower (e.g. benefit credit to your credit union account).

• I have a poor credit history; can I still get a loan?
  • We consider all loan applications carefully.
  • If you can provide evidence that you are trying to repay and resolve your previous debts we will consider giving you a loan.
  • In addition we may be able to help you consolidate some or all of your existing debt into one affordable repayment. We assess each applicant individually analysing income and expenditure so our loan decisions are based on your ability to repay the amount you borrow.
  • If we feel you would be worse off by borrowing we will refer you to an agency that can help.

• How do I repay?
  • Visiting your local Credit Union branch
  • Paying with a PayPoint card accepted at more than 8,500 outlets countrywide.
  • Though your Engage Current Account 
  • Using a benefit direct credit
  • Set up a standing order payment for money to be paid directly from your bank account or payroll.
  • By Debit Card – if set up - Link

• What if I cannot repay?
  • Your loan will be in arrears if you miss one agreed repayment and in default if you miss 3 or more repayments.
  • Allowing your loan to get into arrears or default may limit your future borrowing.
  • The Credit Union will send you a letter if this happens setting out the consequences of not making the payments you have agreed.
  • As a community lender we do try hard to be flexible to help our individual members and can often agree an alternative repayment schedule if your circumstances change. However we have a duty and legal right to recover monies borrowed as these are the savings deposited by other members.
  • In the unlikely event that Members have been uncooperative with their repayments we may take measures to enforce transfer of savings; recovery of the loan by a debt recovery agency or bailiffs; or a county court judgment to repay the loan.