Borrowing FAQ

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I am a member of Capital, when can I borrow?
As a member you can submit a loan application at any time.  There is no membership qualifying period for our loans and loans are not linked to the amount you have saved with us (with the exception of our Loyalty Advance Loan).

I am not yet a member of Capital, can I borrow?
If you are looking to borrow straight away and are not yet a member of Capital Credit Union, please give our Member Enquiry Line a call on 0131 225 9901 and one of our advisors will explain more about Capital Credit Union and borrowing from us.  Your loan application and membership application can be processed at the same time.

Are there any administration or set up fees?
No, we do not have any set up fees or administration charges for our loans (excluding mortgages).

Can I repay my loan early?
Yes, you can repay your loan in full at any time without penalty.  You can also make additional deposits to reduce the value of your outstanding loan at any time – again without penalty.  The interest on your loan is calculated daily on your reducing loan balance and so as your loan balance decreases, the amount of interest due also decreases.

How do I repay my loan?
If you work for one of our select partner employers, your loan repayments will be made directly from your wages or salary each pay day via payroll deduction.  Direct Debit facilities are also in place.  Additional payments can be made by debit card or cheque deposit.

How much can I borrow?
You can apply to borrow as much or as little as you need.  Our maximum unsecured loan is £20,000 and the minimum amount £250.  All loan decisions are based on your income, expenditure and your ability to repay.

What is the free loan protection insurance?
An added benefit of membership, aimed at providing peace of mind for you and your loved ones, the credit union provides a free loan protection insurance for members up until their 70th birthday.  This could see your loan paid off in the event of your death.  Further information on the insurance and the current level of cover provided can be found here.

How do you calculate interest?
We do not front load interest at the start of your loan.  Instead, interest on Capital Credit Union loans is calculated on a daily reducing balance basis.  As a result, with each repayment you make, the interest which has accrued since your last repayment is cleared and your loan balance reduces.  Interest will then be calculated on the reduced balance.  As your loan progresses, your outstanding loan balance will continue to reduce and you will therefore pay less interest.  We believe this to be the fairest way to charge interest.

What do you mean by ‘Capital Credit Union is a responsible lender’?
At Capital Credit Union we have duty of care to our members when it comes to lending.  We give every loan application we receive careful consideration and make a decision based on the income, expenditure and overall ability to repay the loan.  We have a duty to each loan applicant to ensure that any loan approved, does not result in them facing financial difficulties and a struggle with repayments.  If we reject an application, this will be following an assessment of the application by our personal lending team.  A loan refusal simply means that on this occasion we feel unable to offer the amount of loan that has been requested.  In some circumstances, we may offer a reduced amount.