At each Annual General Meeting the members decide, on the basis of the annual accounts, whether to pay a dividend. This depends on whether the organisation has made a ‘profit
'
that year and whether it is decided that the profit should be paid to the members or reinvested in the business. With a dividend payment you receive a share in the organisation's
profits, rather than receive a fixed rate of interest. For some years we paid a dividend of 5%, but for the year to
30th September 2009
(because of prevailing rates of interest and difficult trading conditions) this was reduced to 2%. The rate for the year to 30th September 2011 will be 1.5%.
How do I pay into the North London Credit Union?
If you are an employee of one of the organisations listed here who we currently have an agreement with you can pay into your Credit Union account directly from your salary or wages using our Payroll Deduction Form. Alternatively you can pay by direct debit (on the 1st or 16th of each month), by standing order, or make one-off payments by cheque (drawn in favour of “NLCU”). By special arrangement, you can pay directly into our bank account. Contact us to find out more.
How much can I save and how often?
You can save as much as you want whenever you want, however the minimum payment is £10 a month. There is no set upper limit and what you pay in is your own choice. The maximum amount any individual can save with us is £10,000.
How much can I borrow?
Our decision on whether we can lend is mainly based on our assessment of your ability to repay. We aim to make sure that your loan is affordable and that it is realistic to expect you to repay it within the time agreed. We offer a number of types of loan from £100 to £10,000 for individuals, and up to £25,000 for established businesses. All loans are arranged with repayments to suit your needs and with no early repayment penalties. Personal loans include free insurance.
What identification do I need to open an account?
Like any financial institution we need to have proof of who you are and where you live. We will be flexible with these needs as long as our legal obligations are being met. A passport and utility bill will get an account open as would a letter from the tax credit office together with a bank statement. For further information visit our proof of Identity page.
Are you like a bank?
As a co-operative all our members are shareholders and so the benefits from successful growth of a Credit Union are more widely distributed than in traditional financial institutions. Whilst banks might invest in the arms trade and pay their staff huge bonuses; we only invest in our local community.
Is my money safe?
Yes. We are regulated and approved by the Financial Services Authority (FSA), just like any other bank. Our staff and Board of Directors are designated as ‘authorised persons
'
by the FSA which means they undergo a range of checks to protect you and your shares in the business. Our members'
savings are protected by the Financial Services Compensation Scheme.
I am not a member of the Credit Union. Can I borrow money?
No. We only lend to our members, once they have made a payment of at least £10 into their accounts once a month for three months.
Are there any penalties if I pay my loan off early?
No, none at all.
What are the interest rates for personal loans?
Our loans are charged at varying amounts depending on the amount you’re borrowing and how you will be making payment. For full details visit our lending section.
Business Lending
How much can I borrow?
For start ups the most we are able to lend is £10,000 over a three year term. For businesses which have been operating longer than 12 months and have certified accounts we can lend up to £25,000 over a term of 5 years.
Where does my business have to be located?
We can lend to a business based in any of the 32 London Boroughs or in the City of
London
.
Who can apply for loan support?
Applications can be made from sole traders, partnerships, co-operatives or limited companies. Most business sectors are eligible, please see our Information Form for more about the types of business we currently cannot assist.
Is a Business Plan Necessary?
If you have a business plan it will certainly help us to give you a decision on whether we can help you. If you do not have a plan we will ask you to complete our “further information questionnaire”, or invite you to work with a business advisor to produce a plan.
How will my applications be dealt with?
Once we receive the application or business plan, we will require some time to assess it. We try to give you some form of feedback within a week of us receiving the application, however we cannot guarantee this. Once we have looked through the application we will contact you and advise you of how we will proceed. If we do not feel your business is one we can assist, we will inform you at this time.
What happens then?
We will work with you to build an application which we believe will be approved by our loan panel. This procedure (known as “due diligence”) may involve you in work to satisfy any queries or concerns we have. If further information of an adverse nature comes to light during the due diligence process we may advise you that we are unable to continue with your application.
What is the interest payable?
Interest rates will be decided ifwe decide we can offer finance, but will be between 1% a month
(12.68% APR) and 1.4% a month (18.2% APR). Some additional fees may be
payable.
Does a business loan involve any costs other than interest?
Yes, we will usually charge a lending fee of 1% of the amount lent, with a minimum of £100.
How are repayments made on a business loan?
By Direct Debit, usually on the 1st of the month following drawdown.
How do I get more information on how to apply for a loan?
Simply telephone on the number shown and ask to speak to any member of our staff. They will be happy to discuss with you your financial requirements and if appropriate provide you with all the information necessary to progress your application. However most of the information, and the relevant forms can be found in our Business Lending section.
