How do I borrow and what does it cost?
How much can I save?
Members can save any amount each week, fortnight or month and can make one-off deposits, up to a maximum savings of £10,000. The Credit Union is required to operate strict procedures to prevent money laundering. Most members save between £5 and £25 per month. Savings can be weekly, fortnightly or monthly by direct debit, payroll deduction or by using the Paypoint card. Paypoint facilities are available at many local shops, post offices and garages.
To be eligible for the Loyalty Bonus scheme, a member makes a minimum deposit of £100 and saves a minimum of £10 per month for 12 months. Deposits over £1,000 do not require regular saving. See the Join Now section for more details.
How do I borrow and what does it cost?
Once you have saved for 6 weeks you qualify for your first loan, which can be double the amount you have saved, up to £500. The first loan has to be repaid within 20 weeks. Thereafter, with the evidence of a good repayment record, the loan as a multiple of savings increases:
2nd loan 3 x savings
3rd loan 4 x savings
4th and subsequent loan 5 x savings up to a maximum of £5,000. All loans must be repaid within 3 years.
HASCU charges borrowers 2% a month (an APR of 26.8% per year). Importantly, there are no hidden charges or penalties for early repayment. The loan rate is fixed and interest is calculated on a reducing balance basis. Therefore the total interest paid on a Credit Union loan is often lower than other lenders charge. The actual amount to be repaid depends on the size of loan and the repayment period. For example, for a loan of £500 repaid monthly over 12 months, the total repayable would be £567.36.
Some people can borrow at cheaper rates if they are well off and have assets. However large numbers of people aren’t accepted by banks and have no alternative but to borrow from doorstep lenders and other companies that usually charge 10-20 times more than HASCU. Rates of 180 – 1,000% per annum are not uncommon.
When a loan is taken out the member is encouraged to continue to save, so that by the time the loan is repaid the savings have grown, creating increased financial capacity.
Loan application forms can be downloaded from the Credit Union Solutions website, collected from the office (open on Wednesday and Friday 10 a.m. to 2 p.m.) or posted to you on request. The loan application is assessed by our Loans Officer and Credit Union Solutions.
A loan can be provided for anything that is legal. Most people borrow for essential goods, home improvements, buying a car or special equipment, to fund education and training, to set-up a business, arranging weddings and other celebrations, or going on holiday.
HASCU currently contracts with Credit Union Solutions, a London based company, to provide the administration and manage the accounts. CUS support six credit unions in London and the South and can therefore provide a more cost effective service that avoids the need for offices and takes advantage of internet and electronic banking services such as Paypoint.
Credit Union Solutions are based at
The Bungalow,
Harlington Community School,
Pinkwell Lane,
Hayes,
Middlesex, UB3 1PB
Telephone: 020 8756 3867
Web: www.creditunionsolutions.co.uk
Email: admin@creditunionsolutions.co.uk
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