HBCU Frequently Asked Questions

How much does a loan cost?

Just 1% per month on the reducing balance - about £6.50 per £100 per year. This is much less than shops' credit terms, catalogues, most credit cards and banks.
The Annual Percentage Rate or 'APR' is 12.7
Some examples, please?

Certainly... A loan of £200 repaid weekly over one year costs £4.09 per week.
One of £2000 over two years would be £94.15 per month. For other amounts or different periods, check out this Loan calculator. And remember, the profits go back to the members. (Most members try to save a bit with each repayment, because saving's a good habit and in a CU helps others, too.)

Who decides if I'll get a loan?
A special committee considers all applications and looks for a regular savings record, a sensible reason for borrowing, and your ability to repay the loan.
Will my money be safe?

Yes. We have honest officers, internal checks, and a professional auditor and make regular returns to the government body which oversees all Credit Unions.

Next page: [Frequently Asked Questions 3]