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The Credit Union will consider loan applications from members for any provident or productive purpose. Each application is treated in the utmost confidence and will be considered on its own merits. It is credit union policy to meet the borrowing requirements of as many members as possible, subject to the affordability and creditability of each member, and available funds in the Credit Union.
Applications for loans are made on a standard loan application form. A member may apply for a loan by attending the office, by telephone or via the members section of the web site. Our staff will give you any assistance required. Each loan application will then be considered by the Loans Officer.
What you need when applying for a loan
In deciding whether or not to grant a loan the Loans Officer will take note of the members history of savings and loan repayments (if applicable), as well as the applicants ability to repay. Before a loan is granted a member may be asked to submit information documenting their weekly or monthly income (eg a recent payslip). The member will also be asked to sign the loan agreement and the promissory note on the loan application form. This is a legally binding document being a promise to repay the loan, and to commit to regular repayments.
Remember - only members are eligible to apply for a loan from The Pentecostal Credit Union.
Planning and managing repayments
Credit unions are flexible with regard to repayment plans, though there are some legal limitations to length and amount of loans. The member will be advised on the best repayment plan to meet their own circumstances. Members are generally advised to repay a loan in as short a time as possible. 10 years is the maximum loan duration for an unsecured loan and 25 years for a secured loan. Should a member experience difficulties in meeting repayment commitments, they should contact the credit union as soon as possible, who will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan will be renegotiated if possible.
There are no penalties associated with clearing your loan quicker than agreed.
Interest on credit union loans
By law credit unions cannot charge any more than 3% per month on the reducing balance of a loan. This represents an interest rate of 36% APR (Annual Percentage Rate). Credit unions do not charge fees or transaction charges. The Pentecostal Credit Union is currently offering competitive rates that are well below the legal maximum. View our loan calculator to see how reasonable a Pentecostal Credit Union loan could be. We also have regular promotional rates of interest. Since the interest is charged only on the outstanding balance of the loan, you will pay even less in interest if you repay the loan in a shorter time than planned.