Loans from London Community Bank

Our Loans

You can apply for a loan from London Community Bank if you are an existing member or on day one of joining. You must be aged 18 and above.

Which loan is right for you?

We provide very competitive loan facilities, even if you have no prior credit history or a difficult credit history. The key factor in agreeing to provide a loan is ensuring you have the ability to meet the regular loan payments. We have four types of loans – the key features are set out below:

	Child benefit loan	Standard loan	Home owner loan	Secured loan
Amount available	From £200 to £500	From £200 to £7,500	From £7,500 to £15,000	From £2,000 to £25,000
Term	Up to 12 months	From 1 month to 12 months for loans below £1000. Up to 5 years for larger loans	From 1 year to 5 years	From 1 year to 5 years
Interest rates	3% per month. (42.6%APR)	From 1% per month (12.7%APR) to 2% per month (26.8% APR)	From 6.9% APR to 10.9% APR	APR 5%
Key conditions	Must be in receipt of child benefit paid to your account with us	Must be in receipt of employment income	Must be a home owner and receipt of employment income	Loan balance must at all times be covered by share balances

Some of the common key features of our loans are:

All interest rates are fixed so you will not be exposed to any changes in Base Rate
You can apply for a loan on the day of joining the Credit Union
We never charge lending fees, processing fees or early repayment fees
All loans come with FREE life cover for the amount outstanding, up to the age of 69 and £10,000
Loans can be for most things including holidays, cars, university fees and debt consolidation
All loans are subject to our servicability checks

How to apply

We consider loan applications for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits.

You can apply online via the members area or by downloading an application form and posting it to us, or give us a call on 01895 250958 and we can pop the application form in the post for you.

We will need to confirm your income, either wages or benefits and see a recent bank account statement, less than 3 months old. These documents can be sent by email to info@Londoncb.co.uk, posted to us.

What happens after you have applied for a loan

Loan applications are considered by our loans team and we aim to give you an answer within 24 hours, once we have all the information. Our loans team make a careful and personal assessment of whether you can afford to repay the loan and keep up with your other commitments. They also look at your credit history, but having had difficulties in the past won't necessarily prevent you from having a loan. As with all loan applications, they do need to meet our underwriting policies and on occation we may not be able to assist or may offer a lower amount than applied for. If your circumstances are unusual or about to change, please tell us!

Once a loan is granted you will be asked to sign a loan agreement form, which is a legally binding document, being a promise to repay the loan on time and in full. Once this has been returned the loan will be drawn down and the funds sent to your nominated bank account. The only exception is for new members where we will also require your first standing order payment to be made before drawdown. This is not a requirement for payroll deduction loans

All borrowers also have to save a minimum sum of £2.50 per week or £10 per month where loans are below £1,000 and £20 per month for loans above £1,000 as a condition of the loan. This savings account is 'locked' until the loan is paid off, and helps us to lend to other members. It's also a nice bonus when you have finished repaying your loan.

Planning and managing repayments

London Community Bank is flexible with regard to repayment plans and when members face financial challenges. Should you experience difficulties in meeting repayment commitments you should immediately explain the situation to us and we will treat the matter sympathetically and in total confidence. Please see “difficulty making repayments” for further advice.

Free loan life cover

The Credit Union’s Loan Protection Insurance Program, or LP Insurance is put in place and operated by the Credit Union for the benefit of the borrowing members of the Credit Union.

Certain Terms and Conditions apply to the Loan Protection Program including

Maximum age at time of claim is 69 years old
The maximum amount of a claim is the outstanding loan balance or £10,000 whichever is the lower
CONDITION LIMITATION – there will not be a life insurance benefit for the loan on an insured member if their death results from an illness or injury for which they received medical advice, consultation or treatment within the six (6) month period prior to the loan date. This rule is not applied if the member dies six (6) months or more after the loan date.There are other more formal terms and conditions - please ask a member of the Credit Union Staff for more information.

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