Education Loan


 

 

  • Features
  • How To Apply
  • FAQ
  • Suitability

Our low-cost Credit Union Education Loan could help you spread the cost of your training course or educational studies

If you need to pay for training to support your job skills or boost your career prospects with professional studies, we could help you to get on course with an affordable way to spread the cost.   With a Credit Union Loan you can be certain that your repayments won’t suddenly increase, and you won’t be hit with unexpected fees.

Apply now

  • Borrow up to £7,500 over a maximum of 5 years
  • Funds paid directly to your education provider
  • Flexible repayments – weekly, fortnightly, 4-weekly or monthly
  • Interest is only charged on the reducing balance
  • No penalty fees to pay your loan off early
  • Free bereavement protection policy (see terms and conditions)


Online

Complete the online application form*

 

In-branch

Step 1: Provide proof of your income.  Non-members may be asked to provide two or three acceptable items of identification.

Step 2: Complete the application form.

 

Telephone 

Speak to our friendly team on 01482 778753 - Option 2  (Mon-Fri 10 am to 3.30 pm).

 

* We may ask you to provide proof of your income and (for non-members) identification at a later stage.  If you have these documents to hand, there is an opportunity to upload them when you apply.  We’ll also ask existing members for their active email address. If it’s not the same as the one registered on your CU account, you’ll need to update it with us first.

All loans provided by HEY Credit Union are subject to status and our lending policy. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised.

Who can apply for an Education Loan?

You must be: a) aged over 18, b) registered on the voters roll, c) have your own current account, and d) apply to join HEY Credit Union if you aren't already a member.

How can I apply for a Loan?

Complete our online application form, or alternatively, download and print the Loan Application (and Membership Form if you aren't already a member. If you’re not already a member, you may also be asked to provide at least two acceptable proofs of identification.) 

What will you need as a proof of my income?

If you receive:

- Benefits - Your most recent Universal Credit Award Notice (if applicable) and a recent bank or Post Office statement, showing at least one months’ worth of transactions.

- Wages (employed) - Last three payslips and a recent bank statement showing at least one months’ worth of transactions.

- Self-employed income/ Student grant income/ Bursary income – Please speak to us before making an application.

Do I need to be employed to apply for a Loan?

No, as long as you can provide proof of regular income as stated above.

Do you do a credit check?

Yes. Each Loan application is assessed on an individual basis and takes into consideration a variety of factors including the affordability of the Loan, previous savings and borrowing patterns with the Credit Union, credit history and so on. Information on how we use Credit Reference and Fraud Prevention Agencies to check your credit history is supplied separately on request and on our website.  

Do I have to save with the Credit Union to get a Loan?

We may be able to offer you a better loan rate if you agree to “pledge” your savings with us (although this is not a condition when we offer you a Loan). If you do agree to “pledge”, we will require you to save at least £10 per month (£2.50 per week) alongside your Loan payment, into your Membership Account. Your Membership Account will be “pledged” to the Loan, which means that you cannot withdraw from it until your outstanding Loan is less than the amount in the account (the difference may then be drawn). You can also have additional and separate Instant Access Accounts which you may draw from at any time.

How long does it take to make a decision?

Once your application is complete with all supporting documents, we aim to make a decision within 5 working days. It may take a little longer at busy times such as Christmas and holiday seasons.

How much can I borrow?

You can apply for a Loan from £100 to £20,000.

When can I apply for another Credit Union Loan?

You can reapply once you have repaid one third of your existing Loan by regular instalments. 

Do you offer joint Loan accounts?

Not currently.

How do I repay my Loan?

All Loans are to be repaid either through your own bank account by bank standing order or direct debit, or by payroll deduction.

How often must I make repayments?

At the same frequency as you receive your income. Repayments should be made regularly (weekly, fortnightly, 4-weekly or monthly).

How do I collect my Loan money?

We can transfer money to your bank account, or, by agreement in advance, you may be able to collect cash from a branch. If you want to use your Loan money to pay any existing credit or bills, we can arrange to pay these for you.

What interest do I pay?

Credit Union Loan rates start at 6.5% APR and are capped at 42.6% APR.

How is interest applied?

It is applied to your Loan daily and calculated on the outstanding balance. This means that if you settle your Loan early you will pay less interest. 

What term do I pay my Loan over?

Up to ten years.

Are there any penalties or hidden charges for clearing my Loan off early?

No.

How often will I get a statement?

Statements are provided upon request, or you can check your balance by registering with us on our website.

What if I cannot afford my repayments?

Get in touch with our Credit Control/Member Solutions Team (01482 778753 - option 3) without delay to discuss a reduced payment plan.

Failure to keep up repayments could have a serious effect on your credit report and ability to obtain future credit.

Updated 9.2.24

All loans provided by HEYCU are subject to status and our lending policy. Applicants must be aged over 18. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised. To find out more about how we use your data to help us make decisions on loans please read our Privacy Policy.  

What are its key features?

Our Personal Loan offers a simple, competitive way to help you achieve your plans affordably.

With loans available from £100 to £20,000, it’s a safe and sensible way to spread the cost of a major purchase or smooth out those “lumpy” living expenses.  For example – Christmas, clothing, household goods, cars, home improvements, holidays, electrical appliances, computers, season passes, vets fees, education courses, family celebrations, weddings or bereavement expenses. 

- Borrow up to £20,000 over periods up to 10 years

- Interest rates from as low as 6.5% APR (capped at 3% per month)

- Interest is only charged on the reducing balance

- We only lend amounts you can afford to repay

- Pay your loan off early without any penalty fees

- You can choose to save as you repay your loan

- Free bereavement protection policy (see terms and conditions).

What is the purpose of a Personal Loan?

- To help you to spread the cost of a major purchase or unplanned expense over a sensible period with known regular repayments and affordable interest rates.

- To enable you to cope with seasonal spending pressures (such as Christmas, holiday and family events) by spreading the cost over a sensible period and without resorting to high cost sources of credit.

A Personal Loan could be suitable for you if:

- You want to borrow an amount from £100 to £20,000 over a period of up to 10 years at an affordable interest rate fixed for the period of the loan.

- You can make your repayments by bank standing order, Direct Debit or payroll deduction.

- You want to be able to select weekly, fortnightly, 4-weekly or monthly repayments, to match your income pattern.

- You want the option of making savings deposits alongside your loan repayments.

- You may want to settle your loan early without any penalty fees.

- You are under 70 and want free bereavement protection cover included.

A Personal Loan is unlikely to meet your needs if:

- You want a mortgage or to borrow a larger amount than £20,000.

- You are in Bankruptcy, have a DRO, IVA or DMP, CCJs or defaults in the last 6 months.

- You are unable to commit to making regular auto repayments from your own bank account or wages.

- You want a credit card or revolving credit facility. 

 

 

 

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© Hull & East Yorkshire Credit Union | Registered under the Credit Union Act 1979 and the Co-operative and Community Benefit Societies Act 2014. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Our FRN is 213620.