Borrowing from the DCCU

Frequently asked questions:

Do I have to save before I can apply for a loan?

• We normally expect you to save for 3 months before applying.
  This shows us (and you!) that you are capable of making regular payments. In some circumstances this savings requirement can be waived.
  
• Small emergency loans (under £250) are sometimes made to
  people who have not saved providing they have no existing debts.
  Loans may be made to people who have not saved with DCCU if
  they can show that they have made regular repayments to another loan provider (e.g. a doorstep company).
• Loans may be made to people who have not yet saved with us if there is someone prepared to act as a guarantor.
  

How do I apply for a loan?

You need to fill in a loan application form (CD). The form will ask for information about your income and expenditure - this is to help both you and us work out if you will be able to afford repayments. Help in filling in the form is available at the branch offices.

Take the forms to one of the branch offices along with:

• three months' bank statements
• wage slips or benefit letters showing what your income is
• statements or loan books relating to any existing loans
• paperwork relating to any debts you may have.

The more documentation you can provide the better - If we have to telephone
you to ask for more information, processing your application will take longer.

Who decides whether I get a loan?

All loan applications are considered by the Loans Committee.

Not all applications are granted.

• Sometimes we can suggest a cheaper way of resolving your financial difficulties than taking out an interest-bearing loan.
• Sometimes applications are turned down because you have not convinced us that you will be able to afford the repayments.

I have a bad credit record. Is that a problem?

If you have a bad credit history your application will still be considered, BUT

• we will look for evidence that you are now handling your money responsibly.
• You are applying to borrow other people's money, so we need to
  be confident that you will not default on repayments.
  
  

How much do DCCU loans cost?

• Interest is charged at 1% per month on the reducing balance,
  that is 12.68% APR.
• This is considerably less than most store cards and doorstep loans.
• There are no hidden charges or penalties for early repayment.
  
  

How much can I borrow?

• The maximum amount is £4,000.00
  

 

How long can I take to repay the money?

• The maximum period is 36 months.

 

How are repayments made?

• The best way of repaying a loan is by setting up a standing order on your bank account. Then you know repayments will be made without you thinking about them.
• Alternatively, you can make repayments by using a paying-in book which enables you to pay cash or cheques into the DCCU account
  at any branch of Barclays Bank. Paying-in books are available from DCCU branch offices.
• In some cases repayments can be taken directly from wages through a salary deduction scheme. (Savings can also be made in this way, so your employer will not know you have received a loan.)
• If you die your debt will automatically be repaid since it is covered by free life insurance*. *(subject to an upper age limit)

 

What happens if things go wrong and I can't repay?

• Get in touch with us at once.
• Sometimes, if for example your benefit has been stopped because you are in hospital, we can reschedule the loan.