General Information
Our Debt Consolidation Loans are designed to help members reduce the burden of multiple debts.
New members who have not made their first contribution must deposit at least £10 before any loan application can be completed.
The product can help members get out of the grasp of high-cost “pay-day” loans.
And our help centre partners can support members improve their approach to borrowing and managing finances through a series of fun interactive learning modules.
Product Terms
Applicants for a Debt Consolidation Loan must maintain a sum of at least £5 in their Regular Savings Account – AND continue saving a minimum of £10 per month.
In addition, they:
- Must be a UK resident.
- Must be over 18 years old.
- Must not be Bankrupt, entered into a Trust Deed, DAS, IVA or DRO.
- Must agree to savings being pledged as security for the loan.
- Must agree to pay an interest rate of 18% (19.6% APR).
- Must be able to afford the repayments necessary for the Debt Consolidation Loan.
- Early repayment is permitted without penalty.
Repayment Information
Loan Repayments are taken from your savings account on the 1st of each calendar month. Your first loan repayment will be deducted on the 1st of the month following the loan completion date. Loan repayments can’t be deferred, and repayment holidays are not permitted.
All members who complete their loan on the terms stated at the time of the application will receive a 1% rebate on the total amount of interest they have paid.
Loan Protection
Loan Protection is a free safeguard offered by the NHS Credit Union. Your loved ones can be secure in the knowledge that your NHS Credit Union debt (up to a maximum of £15,000) can be paid off, giving them peace of mind at a difficult and uncertain time.
Loan Protection is provided as a member benefit by the NHS Credit Union. It is free to every member, subject to the terms and conditions. However, it should be remembered that the terms of this free member benefit may change from time to time. The applicable rates/amounts covered are those prevalent at the date of death.
NB: Individual members do NOT have an insurance policy – they share in a free benefit offered by the credit union.