All parents can now apply for a loan of £500* if child benefit payments are made into your credit union account, repayable over 50 weeks for parents who receive their child benefit weekly or 13 months for parents who receive child benefit every 4 weeks.
Parents who receive child benefit for 2 or more children, can apply for the £750* child benefit loan.
Members who have re-paid two or more loans in full AND receive child benefit for two or more children, can apply for the £1,000* child benefit loan, providing there is £100 in savings.
*42.6% APR compared to a doorstep lender at 399.7%
Repayments and child benefit savings
Once the loan has been re-paid, you can withdraw all or some of your child benefit savings, continue to save or apply for a new loan.
** Any remaining funds will be deposited into a Share 1 account. Members will be able to request a withdrawal from the Share 1 or can contact the Credit Union about automatic payments.
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.
- Once you have applied, please email the credit union to advise how much child benefit you receive and how often you receive this.
- The loan application will be assessed and you will be advised of the decision by email. Please be advised a credit check will be performed.
- If approved, you will be emailed a loan agreement along with our bank details to have your child benefit payments re-directed into your credit union account.
- Once we have received both the loan agreement and the first payment from child benefit, the loan will be processed and paid into your nominated bank account within 2 working days.
- Please be advised the loan cannot be paid before the first payment has come in.
Information about loan and top up eligibility
Members can apply for 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. Please refer to the table above for eligibility.
How do I top up my loan?
Simply contact the credit union office and let us know you would like to top up your loan and further information will be provided to you.