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.

The Low Income Loan is secured against a benefit or wage, the loan is £400* and is charged at 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.

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
  • I do not have an undischarged Bankruptcy or Trust Deed

How to apply

  • Complete the online loan application
  • Send us two forms of identification and your last months bank statement. Do this via the Contact  section.
  • We will then access your application and give you a call.
  • At your loan appointment we encourage sign up to one of the free credit reports.
  • *Loan offer is made, the loan is for £400 and following assessment of the application some of this may be held in your share account
  • Benefit or wage is move 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.

Repayment Illustration

Based on Low Income Loan at 3%

  • 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.


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