At KCU Ltd, we will consider an unsecured loan-please come in and talk to us about your needs.
Loan Applications
To be eligible for a loan, you must have been a member of Kernow Credit Union for a minimum of 2 months and be able to show a record of regular saving. The maximum a member is eligible to apply for is 3 times their Shares.
“Share Loading” is not allowed! (ie Paying in large sums prior to a Loan Application to raise the level of Shares with the aim of getting a large loan).
The Loans Committee meets weekly on a Tuesday so all applications need to be in by midnight on Sunday in order to be assessed on Tuesday. (Please fill in the form truthfully as we can carry out a few soft checks.)
Please note if you are applying for a loan of £1000 or more we will require 3 months bank statements. If you have more than one bank account we will need all, as we need to see source of income and how you spend your money. After you submit your application a link will be sent to you which will enable you to submit your bank statements to us easily.
Before submitting the form please check we have your current phone number, email address, bank details and other details.
It is advisable to carry your phone at all times on a Tuesday, as a member of the Loans Committee will probably contact you. If you cannot be contacted this may delay your loan being processed.
Loan policy for all loans taken out on or after 1st May 2024
Standard loans
Eligibility: 8 weeks' membership, with regular savings.
Max Loan: 3 times share balance.
From May 1st 2024:
Loan Rate Retention policy Proposed
0-£2000 3% (FIXED £ Retention amount, set at minimum 1/3 of total loan, retention amount stays constant throughout loan)
2001-£5000 2% (Retention will be % based, min. 33.3%)
£5001+ 1% (Retention will be % based, min. 33.3%)
e.g. Loan of £1800 @ 3%/month, Retention amount FIXED at £600, staying at £600 throughout loan.
e.g. Loan of £4500 @ 2%/month, Retention will be % based, min. 33.3%, i.e. starting @ £1500, then REDUCING as loan is repaid.
Repayments: by regular payments over a period up to 3 years.
Top-ups: You may apply to top-up and reschedule an existing loan at the discretion of the loan committee. It is preferred that 50% of the loan has been repaid. In extreme circumstances an application for a top-up will be considered when 1/3 of the loan has been repaid, in these circumstances the loan may be capped by the loan committee.
Loyalty Loan
Interest Rate: 0.5% per month (6.34%APR) on reducing loan balance.
Eligibility: all members.
Max Loan: Equal to share balance.
Repayments: by regular payments over a period up to 3 years.
Retention: Shares equal to at least 100% of outstanding loan balance must be retained as security during the loan period.
Top-ups: You may apply to top-up and/or reschedule an existing Secured Loan, and may apply to convert to a Standard Loan, subject to normal conditions.
FAMILY LOANS
Kernow Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority 223115.
