Credit Unions Family Loans £500
We all agree that loans via credit unions are handled very differently than a regular bank or payday loan. Especially the Family Loan.
It is made for families with children to be able to manage the extra expenses around the year. Such as back to school, birthdays, holidays, Christmas, trips... We also encourage Family Loans for other needs, such as buying a new appliance, fix a car, fix something at home, a DIY project, make home a better place... It all reflects back on the family.
Because of the financial regulations, the only accepted repayment method is via child benefit. That doesn’t mean credit unions collect the child benefit. If credit unions skips the credit check, they need some kind of guarantee. Also this doesn't mean an instant approval, we need to check the applicant affordability as well.
We operate from a humanitarian perspective first and our community comes first.
How credit unions use the child benefit?
When the HMRC pays out the child benefit to the borrowers account with the credit union, the credit union like CLEVR Money, splits the money into 3 parts. First, credit unions collect the monthly repayment for the Family Loan, then add the saving amount into their saving account, then sends the rest to the borrowers personal account.
What to do if a parent needs more cash?
Apply for top-up loan. The process is simple, the parent needs to apply for another Family Loan. It is the same process but the approval is usually guaranteed. When the credit union receives that top-up loan application, we usually close down the previous Family Loan and opens a new Family Loan account.
We notice that parents welcome this method. They apply for top up and add what they have saved on top to cover expenses while no extra money is taken out of their pocket.
If you are so bad at saving!
Family Loan, or any loan with a credit union is conditioned with starting saving. This doesn't mean that the borrower will be out of pocket. Actually the borrower will not even feel that they are saving.
When someone borrows from a credit union, the agreed saved amount (min £10) is added to the loan repayment amount.
Example of how Family Loan and saving works:
Borrowing £500 over 12 months will cost £50.23 per month. Adding £10 saving to it makes the total up to £60.23 per month. That amount is deducted from the child benefit when it enters the borrower's credit union account and the rest of the child benefit is sent to the borrower's personal bank account.
If you are in need, do not hesitate to apply for a Family Loan. If you have any question, please email hello@clevr.money.
You may like to read more about Family Loan here:
