Borrow with us
The Credit Union will consider loan applications from members for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits. It is credit union policy to meet the borrowing requirements of as many members as possible.
Loans can be applied for by calling into our office, by telephone or via the members section of the web site. Our staff will give you any assistance required. Loans will then be considered by a Loan Officer, or will go to the weekly Credit Committee meeting - this is held every Wednesday morning. All applications must be made before close of business on Tuesday. Proof of income and expenditure must also be supplied before close of business on Tuesday.
What you need when applying for a loan
In deciding whether or not to grant the loan the loan officer or credit committee will take into account the members record of savings and loan repayments, as well as ability to repay. All loans are based on a multiple of your shares. You may be asked to provide proof of income and expenditure i.e. recent bank statements. This information must be provided before the Credit Committee meet to enable them to consider your loan application.
Members who apply via our website are reminded that they must answer all the questions on the loan application form.
Remember - only members are eligible to receive loans from your credit union. All loans are a multiple of your shares 1.
Planning and managing repayments
Credit unions are flexible with regard to repayment plans, though there are some legal limitations to length and amount of loans. The member will be advised on the best repayment plan to meet their own circumstances. Members are generally advised to repay a loan in as short a time as possible. The maximum loan term for an unsecured loan is 5 years.
Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the credit union, which will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan will be renegotiated if possible.
There are no penalties associated with clearing your loan quicker than agreed.
Interest on credit union loans
Johnstone Credit Union charges a maximum of 1% per month on all loans. This represents an interest rate of 12.68% APR (Annual Percentage Rate). Credit unions do not charge fees or transaction charges. The Credit Union is currently offering competitive rates. View our loan calculator to see how reasonable a credit union loan could be. Since the interest is charged only on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned.
Applying for a loan online
If you apply for a loan via the website your application will go to the first Credit Committee Meeting held after receipt of application. The committee meets every Wednesday morning to consider all loans received. Bank statements and wage slips - when required - must be supplied before the meeting. You will receive an email on the Wednesday before close of business informing you of the committees decision.
When applying for a loan, add the amount you wish to apply for onto any outstanding loan balance - then using the calculator work out the term and payment that you are comfortable with. After this make your loan application putting the amount you want to borrow in the "loan value" box.
First time loans
First loan applications must be done in person at the Credit Union premises and you must bring along proof of income and expenditure.
Special Car Loans
Special car loans available APR 9.3%
Terms and Conditions
- Loans must be for a minimum of £3000 and a maximum of £15000 plus Shares 1
- Payment must be made direct to Garage (VAT Registered) via BACS
- Loans must be repaid in full
- Must be a member for 2 years
- Must be arrears free for 2 years
- Must save £2 per week or £10 per month with every loan repayment(minimum share balance required)
- 2 months salary slips and 2 months bank statements must be provided
- Payment must be made by standing order
- Note - there are no hidden costs for paying the loan off early, no set up costs, repayments are available up to 5 years