1. Standard Loan - Terms & Conditions

 1.1   A Credit Union Standard Loan provides loan amounts of between £150 up to a maximum of £5000. Members do not require a minimum savings balance prior to submitting an application for a Standard Loan.

 1.2.   Members may apply for a loan through the Loan Application section of the member’s area of our website (members must first register for online access to their account) or by completing a Loan Application form (available from our website or the credit union office).

1.3   Members must include a copy of their most recent payslip and monthly bank statement (must cover one full month) with their application.  These documents can be handed in at the office, posted or emailed to us.

1.4   There is no automatic right to a loan.  The Credit Committee will consider a number of factors when considering a loan request including affordability, income & expenditure and other borrowings.

1.5   Under the current credit union loan policy members are required to save a minimum of £10 per month whilst repaying a loan and this amount will be included in your total regular payment.

 1.6   We will provide you with a written breakdown of your total regular payment, the amount of interest charged and the length of the repayment period.

 1.7   Standard Loans are issued at in interest rate of 1.09% per month, Annual Percentage Rate (APR) of 13.9% up the value of £1000 and at a rate of 1% per month, APR of 12.7% for loans between £1001 and £5000.The credit union reserves the right to refuse any loan application or offer a loan for a smaller amount than the loan amount requested.

2. Credit Checking

The Credit Union reserves the right to carry out a check when considering a loan request and details of this credit check will be recorded on your credit reference file. A poor credit history does not necessarily mean a loan will be declined as we do lend to people who may have had financial difficulties in the past.  However, if a credit check reveals something a member has not declared on the loan application (e.g. bankruptcy, additional borrowing or outstanding balances) we will normally refuse the application.

3. Non Payment/Default

You agree that should you fail to make all repayments due under this agreement the total amount outstanding will immediately become repayable and will be repaid in full, plus any accrued interest, from your credit union savings account.

 In the event that of default on your loan, details of such default may be passed to credit reference agencies, debt recovery agencies, and the courts. In such circumstances we may disclose details of your account and any other matters relating to your account to a credit reference agency. We may also disclose details of your account to individuals or organisations for the purposes registered by Tay Valley Credit Union with the Data Protection Registrar.

 4. Attached Shares Whilst Repaying a Loan

I understand that I may not make a Share Withdrawal while I have a loan balance in excess of my share balance. In signing this document you agree that any current and all future shares deposited with us up to the value of the outstanding loan are held as security towards payment of the principal sum, interest and expenses which may be due or become due. When a share balance is higher than the loan balance a withdrawal may be made but only to a level where the share balance equals the outstanding loan balance.

 5. Data Protection

In accordance with the principles of the Data Protection Act 1998, we will use your personal details for the purposes of managing your accounts with the Credit Union. Your personal details will be treated confidentially and will only be shared with other agencies for the purposes of credit referencing and debt recovery.

6. Termination

We may terminate the Loan Agreement and demand immediate repayment of all sums due if:

• You fail to keep any part of the Loan Agreement.
• You have given us false or inaccurate information in connection with the Loan Agreement.
• You become incapable in law of managing your own affairs. E.g. entering into a Trust deed or declared bankrupt.

 Should you have any questions as to the meaning of any part of this Personal Loan Agreement, you should consider seeking independent advice from a Solicitor, the Citizens Advice Bureau or other organisation.

7. Cancellation Rights

You have the right to cancel your loan agreement with the Credit Union, without penalty, within 14 days of your loan funds being received by you. To cancel your loan agreement within this period, please contact the Credit Union office. The loan plus accrued interest must be repaid in full. Interest runs from the day the loan is issued until the date the loan is repaid.