Parkhead Credit Union
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Loans - How to apply

First step is for the potential borrower to complete a written loan application form. Information on the member’s income and expenditure shall be provided on the loan application form and evidence produced as required. A volunteer or staff will be available to help the member complete the application form if required. It is usually preferable for the member applying for a loan to have an interview with Credit Committee or Staff. The purpose of the interview may include:

  • To elaborate on the information in the application

  • To verify the purpose of the loan

  • To better understand the financial status of the applicant

  • To determine the reliability of the applicant according to their personal history and references

  • To establish a personal relationship

All loans will be assessed taking into account the member’s character and their ability and intention to repay. Once all the necessary information has been obtained the completed loan application shall be given to the Credit Committee who should review the application and if accepted, pass to Treasury Team to arrange for the loan to be disbursed. It is our aim to provide an approved loan within 7 days of the request being received. The credit union can offer you the facility of repaying your loan by standing order. If you wish to take up this service, please ask for standing order form.

Loan Policy

• Members must be 18 years or over before applying for loan • Members must have saved regularly with the Credit Union for a minimum period of 12 weeks or a specified time if the loan is for Emergency/Referral purposes. Share Value loan granted on request

Secured Loans

Secured loans may be granted within the first 5 wks of membership and must be repaid within the statutory maximum allowed by law or Credit Union rulebook (10 years for secured loans)

Revolving Credit

Once signed up for this account this enables members instant cash up to the agreed credit limit.

Unsecured Loans

Members must save for a minimum of 12 weeks and show a regular savings pattern before an unsecured loan will be granted. All unsecured loans are based on the member’s share balance and/or based on the ability of the member to repay as per the loan agreement and to be repaid within the statutory maximum period allowed by law or Credit Union rulebook (5 years for unsecured loan)

Emergency LoanEmergency loans may be granted for the follow reasons:-

  • Bereavement/Funerals

  • Burgarly/theft, etc.

  • Emergency house/car repairs

  • Replacement of essential house items (washing machine, Cooker, Refrigerator)
Members may be asked to provide proof of the emergency. Failure to comply with the terms and conditions of loan agreement may prejudice subsequent loan applications. Members will be required to continue saving during the loan repayment period. Interest rate charged on all loans will be 2% per month on the decreasing balance of the loan.  Shares can only be withdrawn when the loan balance falls below share value or by approval by the Board of Directors.

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