Can I be a member of Bradford District Credit Union?

If you either live or work in the Bradford District, you are eligible to become a member of the Credit Union.
Please download an application form. Alternatively, contact the office and we will send you an application form.

Does it cost anything to join?

A membership fee of £2.00 is charged annually (at the same time as the dividend is paid) to cover costs such as issuing statements and newsletters.

How much do I have to save?

Members agree to save a minimum of £13.00 per month or £3.00 per week.

How are members funds safeguarded?

The activities of Credit Unions are strictly controlled by the Financial Services Authority. Members savings are protected by the Financial Services Compensation Scheme, in the same way savers with banks and building societies are protected.

How do I make withdrawals?

Cash to a maximum of £100.00 per day can be withdrawn weekly at the Credit Union office. without charge. More frequent cash withdrawals may incur a small fee.
Cheques to be cashed may be issued to a maximum of £500.00, which can be cashed at either Lloyds TSB, Tyrrel Street Branch, or at Council Cash Offices in the Bradford District. Please see Services page for details.

Cheques can be issued to you for any amount you have available.

A direct transfer (BACS) may also be made to your Bank Account for any available amount. You will need to set up this facility in advance. Many members request this service via email, which saves them coming into the office. Please ask for details from the office. You can download a form here.

Who can apply for a loan?

All members may apply for a loan to a maximum of £5,000 – subject to repayment ability. We will work with you to make sure you do not borrow more than you can afford to repay.

How do I get a loan?

Applicants must have been a saving member for a minimum of 3 months. Usually we prefer to see applicants in person for their first application. Subsequent applications should be submitted to our office at City Hall. You will be required to bring certain documentation with you to the interview. Please check with the office to find out what you will need.

Can I get a loan for anything I want?

Loans may be approved for ‘any provident or productive purpose.’ This could be car repairs, a new kitchen, a holiday or just paying for Christmas.

Try and give us as much information as possible on the application form. We may need  a breakdown of costs for certain loans  – for example if your loan was  for “home improvements” we would want you to include a breakdown of the work planned and individual costs. Loans for annual events such as holidays or Christmas should be repaid over one year.

How are loans approved?

Loan applications are considered by experienced officers and include an assessment of your ability to make repayments. We will work with you to ensure you can afford your loan.

Information provided by a licensed credit reference agency may be used to assess any loan application. Please tell us about any County Court Judgements, Attachments to Earnings, or other payment arrears, together with an explanation of the circumstances.

What are the interest rates?

The interest rates are currently as below:

Loan amount	Interest rate
£200 – £1000	APR 26.8%
£1001 – £2000	APR 19.5%
£2001 – £5000	APR 12.7%

You can also download an example of a typical loan.

How is interest calculated?

Normally, interest is charged at the rate of 1% per month on the reducing balance, equivalent to an APR of 12.68%. If you are on low income and do not qualiy for a standard loan we may be able to offer a special loan. This may be at a different rate of interest or subject to special conditions, or both.

How do I make repayments?

Repayments are normally by payroll deduction or standing order to repay the loan over 6, 12, 18, 24, 30 or 36 months.

You don’t have to continue saving a minimum of £3 per week or £13 per month whilst repaying the loan, although many members do.

How is a loan paid to me?

When a loan is approved and the loan agreement signed, the money is normally released by a BACS transfer to your bank account, or by a cheque made payable to you.

How is the annual dividend calculated?

After operating costs Credit Unions must set aside reserves out of their profits to cover tax and other contingencies. The remainder of the profit is given back to members as a dividend.