Authorised and regulated by the
 Financial Services Authority
 Firm Reference No 436625

NFRN Credit Union Limited

Loan Applications
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, depending on the available funds.
Applications for loans are made on a standard loan application form. Loans can be applied for by telephone or via the forms 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.
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.  Once the loan is granted the member will be asked to complete an agreement form, which is a legally binding document being a promise to repay the loan, and to commit to regular repayments.
Remember - only members are eligible to receive loans from your credit union.
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.  10 years is currently the maximum loan term. 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
By law credit unions cannot charge any more than 2% per month on the reducing balance of a loan. This represents an interest rate of 26.82% APR (Annual Percentage Rate).  Credit unions do not charge fees or transaction charges.  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.
Standard Loan
Available to members who have saved regularly for at least three months.
You can currently borrow up to £4,000.
Repayment period can be up to three years (five years if secured).
All repayments will include a minimum of £5* (more should you decide) which will be added to your Savings Account.
Interest charged at 1% per month on the declining balance.
No early repayment charges or penalties - clear your loan when you like.
Enterprise Loan
A larger loan for investment in your business.
Maximum loan available is currently £6,000.   This limit will increase to a maximum of £7,500 plus your shares as funds become available.
Repayable over a maximum of five years if guaranteed or ten years if secured.
All repayments will include a minimum of £5* (more should you decide) which will be added to your Savings Account.
Interest charged at ¾% per month.
No early repayment charges or penalties - clear your loan when you like.
Urgent Loan
Available to both new and non-saving members.
Intended for emergencies.
Maximum loan of £750.
Repayable over a maximum of one year.
All repayments will include a minimum of £5* (more should you decide) which will be added to your Savings Account.
Interest charged at 2% per month on the declining balance.
No early repayment charges or penalties - clear your loan when you like.
Flexible Loan
More like an overdraft facility and will help finance seasonal stock increases or other peaks in financial requirements; you could, for example, draw down an amount to cover Christmas purchases in October and repay it all the following January.  The facility is then ready to use for Easter or Summer purchases.
Available to members who have saved regularly with the credit union for one year or more.
A credit limit agreed for a three year period based on ability to repay.
Draw down what you want when you want it so long as you do not exceed the agreed limit.
Interest charged on the outstanding balance at 1.25% per month.
Minimum repayment based upon repaying the agreed credit available over a period of three years.
No early repayment charges or penalties - clear your loan when you like.
The facility does not have to be used.
Loan Calculator
You can download and use this loan calculator to obtain both loan costs and repayment schedules - Loan Calculator.  You will require Microsoft Excel to run this spreadsheet.