Loans

As a financial co-operative providing affordable credit to the community, our loans are considerably cheaper than many other providers, with lots of other benefits too!  LCCU now offers two types of loans explained below, Flexi Credit and Standard Loans.

  • Attractive interest rates that are fixed for the course of the loan
  • No set up costs, hidden charges or fees for early repayment
  • Free loan protection insurance
  • Negotiable repayment terms in case your situation changes
  • Text message update service

Flexi Credit

Get up to £1,000!

  • Low interest rates
  • Affordable repayment terms
  • Quick approval
  • Safer and cheaper than a payday loan
  • Emergency cash easily arranged

You can access up to your approved limit anytime you need cash for:

  • Family celebration
  • An unexpected bill
  •  New appliances
  • Essential expenses before payday

And best of all:

One quick and easy application will set your credit limit for two (2) years. It works just like an overdraft, as you repay you free up your available balance so you can continue to access funds when you need it with no more forms to fill in.

With Flexi Credit from London Community Credit Union get the cash you need now from a lender you can trust!

APPLY FOR FLEXICREDIT ONLINE NOW

Standard Loan

  • Dream holiday? 
  • Kitchen renovation?
  • Time for that new car?

 Our loans are considerably cheaper than many other providers.

For a limited time get an even better deal, as all LCCU loans over £5000 will qualify for our special reduced interest rate of 0.75% per month on the reducing balance.

We’ve always offered the best rate on smaller loans, and are considerably cheaper than payday lenders. But the credit union isn’t just about fixing the dishwasher, or making ends meet until payday. Members can borrow up to £15,000 (on top of their savings), and now at even better value.

What’s more, there are loads of other member benefits to LCCU loans, including Free Loan Protection Insurance and negotiable repayment terms..

Interest is paid on the reducing balance of your loan, which means your interest repayment will get smaller as your loan balance is repaid. We will also work to help you meet your loan payments if your circumstance change and, if you die, your loan is forgiven, sparing your family financial stress.*

Too good to be true!? We’ve also sped up our processing time so you’ll have a decision in no time, with text message updates letting you know where we’re at, and when the money lands in your account!

Frequently asked questions

Flexi Credit

How much can I borrow? 

Loans range between £100.00 and £1,000.*

 How does Flexi Credit differ from a standard loan? 

Flexi Credit is like an arranged overdraft. With our standard loans you continue to repay your loan each month and the loan balance reduces but when you have an emergency you have to make an application for a top up loan. With flexi credit as you repay you free up money which you can access without the hassle of a new loan application.

 When does my Flexi Credit end? 

Your credit will be available for 24 months after which it will be reviewed

How long will it take to be approved? 

We’re continually speeding up our processing, so now you’ll hear back even quicker! Once you application is submitted, you will be advised of our decision in 1 – 3 working days. Your loan can be paid directly into your Credit Union account  or any UK bank account.

 Once approved you will have full access to the available balance. You can either make cash withdrawals at any LCCU branch or request a free transfer into any other UK bank account.

 Our text message services will keep you updated on the progress of your loan application.

 How much does it cost? 

£ 100.00 – £499.99  – 3% interest on the outstanding balance. In addition, a small monthly fee of £3.00 which will cover costs of all transfers, withdrawals and management of the account.

£500.00 – £1,000 –  2% interest on the outstanding balance. In addition, a small monthly fee of £5.00 which will cover costs of all transfers, withdrawals and management of the account.

Standard Loan

How much can I borrow? 

Loans start at £1,000.00 and you can borrow up to £15,000 on top of the value of your savings.

 How long will it take to be approved? 

We’re continually speeding up our loan processing, so now you’ll hear back even quicker! Once the application is submitted, you will be advised of our decision in 1 – 7 working days. Your loan can be paid directly into your Credit Union account (for free) or any UK bank account (£2 fee will apply).

 Our text message services will keep you updated on the progress of your loan at each stage.

 Preferential Rates

Loans over £5,000 are available at a lower interest rate.

 

Other FAQs

 Who can apply?

You need to be a member of LCCU and 18 years and over to apply. Membership is easy and straight forward and you can apply for a loan / Flexi Credit as soon as you open your account and the initial deposit is credited.

How do I apply?

Simply fill out an online application form (link above) or ask in branch for details.

 Tell me about the Free Loan Protection Insurance 

Loans taken with the credit union (up to £10,000) are protected by the credit union for free, so that in the event of your death your loan is fully paid-off, leaving no additional burden on your family.*

What if I am unemployed or have a bad credit history? 

The credit union operates a responsible lending policy. Applications are reviewed on an individual basis, and assessed against ability to repay,

your history with the credit union, as well as traditional credit scoring. Those that are unemployed or with poor credit history will not automatically be excluded.

 Well managed accounts with the credit union will work to improve your credit scoring.

 What happens if I can’t pay?

We appreciate situations may change and try to be flexible with repayment terms when necessary. Failure to inform your branch, repay or renegotiate terms will result in debt collection and court proceedings.

 You will be notified by letter should your repayments fall behind.

 Can I use my savings if I have a loan / Flexi Credit? 

The savings in your saver plus account are held (secured) as a guarantee against your loan or Flexi Credit. This means that you will not be able to withdraw from your saver plus account until your loan / Flexi Credit is completely clear, or less than the amount you hold in your saver plus account.

 Cooling Off Period 

Once granted you will have a seven day ‘Cooling Off’ period in which you may cancel without legal consequences.

 On acceptance  you will enter into the legally binding Terms and Conditions as laid out in your Agreement.

If you have questions, you can ask us via the “contact us” page.

 *Terms and conditions apply

 

 

 

 

 

As a not-for-profit organisation providing affordable credit to the community, our loans are considerably cheaper than other providers, with lots of other benefits too!

FLEXI CREDIT LOANS

Flexi Credit is your new innovative credit union loan service from LCCU which beats PayDay hands down. It is similar to an overdraft or revolving credit. You only use it when you need it.

Say goodbye to payday lenders.
Quick approval.
Emergency cash quickly arranged.
Use only what you need.
Safer and cheaper than a PayDay loan!

You will find all the details about your Flexi Credit are in the agreement you will receive.  You can create your own loan instantly, within the agreed limits, online or by telephone.  Use £5 or £500, it is up to you.

 APPLY FOR FLEXICREDIT ONLINE NOW

STANDARD LOANS

APPLY FOR A STANDARD LOAN ONLINE NOW

  • Affordable interest rates that are fixed for the course of the loan, and paid on a reducing balance. This means your interest payment always gets smaller.
  • No set up costs, hidden charges or fees for early repayment
  • Free loan protection insurance, so your loan is repaid at no additional cost in event of death 
  • Negotiable repayment terms in case your situation changes
  • Text message update service

 APPLY ONLINE NOW, OR ASK IN BRANCH FOR MORE INFORMATION.

Use our easy Loan Calculator now to find out just how little you’ll have to pay!

 

How much does borrowing cost at LCCU? 

Loan Value

Interest per month

APR

£5,000 +

0.75%

9.4%

£3,000 – £4,999

1%

12.7%

£1,500 – £2,999

1.5%

19.6%

£50 – £1,499

2%

26.8%

How does that compare to other providers?

LCCU is 154 times cheaper than your average payday lender!

APR (%)

London Community Credit Union 26.8

Average Doorstop Lender

272.2
Average Payday Lender

4,214.0

 

Frequently Asked Questions

Who can apply for a loan?

 All members over 18 can apply for a loan.

How do I apply?

To apply for a loan simply fill out an online application form, or pick up an application form in branch.

You will be asked to submit additional documents in branch.

How much can I borrow?

Loans start from £100, and extend to £7,500 on top of the value of your savings.

How long will it take to arrive?

We’re continually speeding up our loan processing, so now you’ll hear back even quicker! Once the application has been received you will hear back in 1 – 5 working days.

A text message services will keep you updated on the progress of your loan at each stage.

Tell me about the Free Loan Payment Insurance

Loans taken with the credit union (up to £10,000) are protected by the credit union for free, so that in the event of death your loan is fully paid-off, leaving no additional burden on your family.  Terms and conditions apply.

 What if I am unemployed or have a bad credit history?

The credit union operates a responsible lending policy. Loans are reviewed on an individual basis, and accessed against ability to repay and your history with the credit union, as well as traditional credit scoring. Those that are unemployed or with poor credit history will not automatically be excluded.

Well managed loans with the credit union will work to improve your credit scoring.

 What happens if I can’t pay?

 We appreciate situations may change, and try to maintain flexibility in repayment terms where reasonable. Failure to repay or renegotiate terms will result in debt collection and court proceedings.

You will be notified by letter should your repayments fall behind.

 Can I get a loan if I am not an LCCU member?

 Only members can take out LCCU loans, but membership is easy and straight forward, and loan agreements can be signed as soon as the first electronic payment enters the account.

Are LCCU loans Sharia compliant?

 Unfortunately, our loan products are currently not Sharia compliant. Please see more about our Sharia compliance here.

Can I use my savings if I have a loan?

Your savings are held (secured) as a guarantee against your loan. This means that you will not be able to withdraw from your savings account until your loan is completely clear, or less than the amount you hold in savings.

Terms and conditions apply.

Once the loan has been granted you will have a seven day ‘Cooling Off’ period in which you may cancel the loan without legal consequences.

On acceptance of the loan you will enter into the legally binding Terms and Conditions as laid out in your Loan Agreement.