The £500 Child Benefit Loan
All parents can now apply for a £500 loan straightaway if Child Benefit payments are made into your credit union account. Borrow £500 and repay it over up to 50 weeks. Repay £12 per week and save the rest. Once your loan is cleared then you can withdraw all or some of your savings, continue to save or start a new savings and loan plan.
Savings after your loan is paid (based on a £500 loan over 50 weeks)
1 Child – £20.70 per week = £435.00
2 Children -£34.40 per week = £1120.00
3 Children – £48.10 per week = £1805.00
At a 42.6 % APR compared to a doorstep lender at 399.7 % APR.
The £750 Child Benefit Loan
Take advantage of the £750 Child Benefit Loan that is available to anyone who has two or more children.
Here is how it’s calculated:
Repayment of £18 a week or £72 a month plus savings.
You will save £8 a week or £36 a month.
£32.60 to go to the main savings account for withdrawal if monthly, or £8.15.
How to apply
Complete the online Child Benefit Savings And Loan application form. When completing the form, under the ‘Loan purpose’, select the ‘CHB Loan’ option. This will tell us that you have applied for the Child Benefit Loan.
Contact the Child Benefit office and redirect your payments to your credit union account. Bank details are below:
M for Money Credit Union
Bank: Co-operative Bank,
P.O. Box 250, Delf House, Southway, Skelmersdale, WN8 6WT.
Sort code: 08-92-50 Account number: 50092495
Once we’ve received your 1st Child benefit payment, your loan will be processed and paid by BACS to your nominated bank account which can take 3-5 working days to clear.
We are now offering our members a top-up of £250 after three months and a second top-up of £250 after a further three months on their loans. After the second top-up, they will need to then wait to clear the loan and can then start the process again.
How do I top up my loan?
Simply contact us to let us know that you would like to top up your loan and we will do the rest. You can also do this on the Members Area of the website.
Which loan does it apply to?
This only applies to your Child Benefit Loan if you borrow £500.