Dumbarton Credit Union provides secure loans. These loans are equal to or less than the shares you hold in your main savings account. This means that there is no risk to the credit union.
The advantages of a secure loan is that you retain your shares as research shows that once savings are used they are rarely replaced so easily.
By keeping your shares you still benefit from the savings insurance provided free by the credit union.
Your loan is also covered by the Loan Protection Insurance provided free of charge by the credit union.
As there is no risk to the credit union a reduced interest rate of 7.2% APR is charged (0.58% per month on the reducing balance).
For example, if taking the loan below over the term stated and paying exactly at the same time each month then:-
£500.00 over 12 months = £43.27 per month, £19.16 total interest charged
£1,000 over 24 months = £44.78 per month, £74.53 total interest charged
£5,000 over 36 months = £154.39 per month, £557.86 total interest charged
The advantage is you still have your shares and the free life insurance.
If you are interested in this loan please contact us.