Low Income Loan
Designed as a starter loan, our Low income loans have been created for new or existing members who do not qualify for a share based loan. So there is no need to apply for membership to apply for our Low Income loan. The Low income loan is secured against a benefit, wage or wage deduction, the loan is up to £500* and is charged at a maximum of 3% a month on the unpaid balance. This loan product is a great way for members to build a good credit history and move on to other loan products.
Low income loans are secured against:
- Any benefit that is higher that the repayments plus savings
- Any wage
- Or if you work for one of our Payroll partners and are on a permanent contact, you can have a deduction from wages.
- Our payroll partners: North Ayrshire Council, Hansel Village, Ayrshire Housing, SeaScape.
Who can apply
- I am 18 or over
- I am (or willing to be) a member of 1st Alliance (Ayrshire) Ltd
- I can afford the loan repayments and share deposits
- I have a Benefit or wage that will cover the repayments and are willing to pay this directly into the credit union. Or work for one of the payroll providers listed above.
- I do not have an undischarged Bankruptcy or Trust Deed
How to apply
Before you apply please make sure you have access to your Credit Report – Credit Karma and Clear Score are two examples of free sites.
- Complete the online loan application.
- We will check your application and give you a call.
- You will be emailed an invite to a Zoom meeting.
- On this we check your credit report with you.
- *Loan offer is made, the loan is for a maximum of £500 and following assessment of the application some of this may be held in your share account
- Benefit or wage is moved over to the Credit Union. Please note that we only take off the agreed payments the balance is returned to your bank the same morning.
- Loan is paid out on receipt of Benefit or wage, or on sign up for payroll deduction.
- If you borrow £400 at £10 a week (last payment is £9.60) your total interest will be £69.67.
- If you borrow £400 at £40 a month (last payment is £2.23) your total interest will be £82.30.
The figures given above are for illustrative purposes only. The actual interest rates and repayment amounts may vary subject to loan amount and status. Loans are subject to affordability.