Frequently Asked Questions - Loans
Loans from £150 to £15,000 are available subject to an affordability assessment and a credit check.
If you have a poor credit history, or even no credit history, it can be difficult if you are trying to get a loan. However, that doesn't mean that we cannot help you. As a responsible lender, we will carry out a credit and affordability check to ensure that you can make the repayments. We will look at your outgoings to decide if you can afford to pay the loan repayments alongside your other financial commitments.
We have a different way of approving loans compared to the process that banks and building societies use which means we may be more likely to approve your application. All loan applications are reviewed by a member of our staff, not a computer program, and decisions are made based on your recent credit history and ability to repay the amount you borrow. Even if you have had a debt problem in the past, we may be able to approve the loan if you can provide evidence that you are trying to resolve previous debts and that it is affordable for you.
Before you consider applying for a loan please read this guidance from the Money Helper.
- We will not lend for business purposes or a mortgage application
- Please note, if you are declined due to a credit check, you cannot apply again for 100 days
- We will not lend to an individual who then lends on to a third party
- We will ask to see your bank statements to identify any unpaid items which may be a sign you are struggling to afford existing financial commitments
- We will not be able to approve a loan if you are currently subject to an Individual Voluntary Arrangement, Debt Relief Order, Bankruptcy Order, Debt Management Plan or similar
- In most circumstances we will not consider lending if you have applied for a loan with us in the last 6 months and been declined.
As a responsible lender we will never knowingly put you in a worse financial position by offering you a loan that could cause you financial hardship. We will have concerns if you have missed repayments so you should make every effort to make the minimum repayment on all of your debts as this evidences your commitment to keep on top of your financial circumstances.
We genuinely want to be in a position to give you a loan but you must consider your circumstances and do as much as you can to put yourself in a good financial situation where we can say yes.
We recognise that circumstances can change from time to time and that everyone has periods when it becomes hard to make ends meet. Please get in touch as soon as you know that you might have difficulty making a payment and we will try to help you move forward. Please also refer to our Money Worries page for additional information.
Our MCU loans allow individuals to apply for a standard loan of up to £15,000 from the Credit Union.These are subject to an affordability assessment and a credit check.
Anyone who lives or works in Manchester, Tameside, Trafford, Rochdale, Stockport or High Peak and Bury can join Manchester Credit Union and apply for a loan.
If your loan application is approved, you will need to sign a loan agreement. If we receive your signed agreement before 15.15 Monday – Friday your funds will be in your account by the end of that working day. If the document is signed after 15:15 it will be the next working day (please note we do not operate during weekends or on bank holidays).
You can repay your MCU loan by standing order from your bank account, by having your benefits paid directly into your Credit Union account, by Direct Debit or by payroll deduction, where payments are taken directly from your salary if you work for one of our BEESMART payroll partners.
Your MCU Loan balance can never be more than £15,000 and you can only have one loan at a time.
You can Top Up your MCU loan when you have repaid 1/3 of your original loan. If you had a £1000 loan, this means you will be able to top up when your balance is below £660. Visit our members area or download our App to apply for a top up
Our maximum loan term is 5 years however the loan term is dependent on the amount and purpose of your loan. Smaller loans and loans for annual events, eg Christmas, holidays or birthdays will be repayable within 12 months.
The quickest and easiest way to submit your bank statements to us is by registering for Open Banking.Open banking is regulated, monitored and built on the principles of GDPR. By using a regulated Open Banking service your bank or building society will pay your money back if fraudulent payments are made. You’re also protected by data protection laws and the Financial Ombudsman Service.
Members can clear the balance of a loan at any time and we do not charge any early settlement fees for this. You cannot make additional repayments in order to secure an early top up.
You can apply for a loan as soon as you are a member of Manchester Credit Union. The amount we can lend you will depend primarily on your income, expenditure and credit history, but for subsequent loans we will also take into account your payment history.