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Low Income Loan

For those that don't qualify for a Share Based 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.

Since this loan is secured against a benefit the maximum 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.

  • 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 do not have an undischarged Bankruptcy or Trust Deed

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.

Applying for a loan

  • You must be over 18 to apply for a loan.
  • You must be a member of 1st Alliance (Ayrshire) Ltd to be approved for a Guaranteed / Share Based Loan.
  • Current members should visit the members area to complete their loan application.
  • New members would need to complete a loan application in full to be considered for a loan. To process the application we would need:
    o Your National Insurance Number
    o Proof of address history for the last three years
    o You to read, understand and sign the declaration
    o Details of your income and expenditure
    o Details of any existing debts or liabilities which you have, including DAS
  • You must be able to afford the Loan repayments and Share deposits.
  • You must not have an undischarged Bankruptcy or Trust Deed.

Members should contact the head office on 01294 557 123, to discuss their loan requirements.

Please note that we check your credit report with Experian and will report to Experian on your payments.

  1. The Lender will lend and the Borrower acknowledges that they have received the sum borrowed under the Agreement. The Borrower will repay the Loan plus interest (i.e. the Total Amount Owing) by the repayments set out in the Loan Details.
  2. Interest will be charged daily on the unpaid balance of the Loan and any unpaid interest at the rate shown in the Loan Details.
  3. The Borrower has the right to settle the Agreement early at any time by paying the full balance of the Loan and any interest outstanding.
  4. The Borrower acknowledges that the details given on the Loan Application for the Agreement are correct and will inform the Lender immediately of any change in financial circumstances which may affect their ability to repay the Loan or any change in their address.
  5. The Borrower acknowledges that the Loan with be recorded with a licensed Credit Reference Agency. Who will record how you conduct your account(s) and this information may be shared with other financial institutions to help make financial decisions about you and anyone with whom you are linked financially or other members of your household. If you borrow and do not repay in full and on time, we may tell credit reference agencies who will record the outstanding debt.
  6. The Borrower may not withdraw monies from an attached share account unless the credit balance held in that account exceeds the amount outstanding under the loan, and then only to the amount of that excess, and only following a prior application to the Credit Union Office.
  7. If the Borrower fails to pay any amount due to the Lender under the Agreement or breaches any of its terms, the Lender has the right to demand early repayment of all or part of the balance of the Loan outstanding together with any unpaid interest. The Lender will give the Borrower written notice not less than seven days before taking any action to recover any such sum. The Borrower acknowledges that, if any Loan Repayments are not paid or are not paid after the agreed time this may result in the Total Amount Payable under the Agreement being greater than the sum set out the Loan Details.
  8. In the event of default the Credit Union reserves the right to pass information held about the defaulting member to third parties.
  9. In the event of default the Credit Union may, if applicable, apply to The Department of Work and Pensions to deduct payment from the individual Borrower’s benefits.
  10. The Borrower will be liable for any and all costs the Lender incurs in recovering sums due under the Agreement. This includes charges for the recovery of the balance and of tracing of the Borrower.
  11. In taking out a Loan the Borrower has committed to an agreed programme of Repayments including capital and interest. In the event of default the 1st Alliance (Ayrshire) Ltd. reserves the right to notify its Credit Referencing Agency of that default.
  12. Any Guarantor under the Agreement will be liable for sums under it which the Borrower fails to pay.

1st Alliance (Ayrshire) Credit Union covers members shares and loans in the event of death. It is a financial benefit that supports your family when they most need it. On joining members instruct who should be the beneficiary of the account. The value of this payment is directly linked to your savings and your age.

Savings

How it works:

  • 18 – 65 years old: shares are covered 100%
  • 66 - 80 years old: shares are covered 25%

The first £10,000 of shares is covered by this insurance. On the members 65th birthday, the balance of the shares is ‘locked in’ and thereafter shares are covered by the 25% rule.

Example 1:

Member has been saving regularly and passes away at 60 with £4,000 in account.

The beneficiary will receive a total of £8,000 (subject to conditions).

Example 2:

Member has been saving regularly and passes away at 70 with £4,000 in account, £3,000 of which was held in the account at 65.

The beneficiary will receive £7,250 (subject to conditions):

£3,000, plus £3,000 for the balance at 65 and then 25% of the £1,000 saved after 65.

Loans

How it works:

Loans are also insured in the event of death. Existing medical conditions are covered after six months (subject to conditions).

The terms of this member benefit may change from time to time. The applicable rates / amounts covered are those prevalent at the date of death.

Please note: This benefit does not mean you have an insurance policy.