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Credit unions provide affordable loans

Credit unions provide loans at a rate you can afford

Some credit unions loans will cost you no more than 1% a month on the reducing balance of the loan (an APR of 12.7%). For example if you borrowed £1,000 over 1 year, you would repay no more than £1,067 in total.


Many credit unions charge less, some may charge more but by law this cannot be more than 3% a month on the reducing balance (an APR of 42.6%). This table illustrates what you would repay if you borrowed £500 over 1 year.


Loan Amount


Total Repayable









Illustration only - check directly with your credit union


You can work out how much a credit union loan could cost you by using our handy Loan Calculator on the right. 

  • Loans come with no hidden charges and no penalties for early repayment.
  • You can also carry on saving, so that by the time you finish repaying the loan your savings would have grown as well.

Margaret from Glasgow has been a credit union member for the past 4 years.  I didn’t have any savings put aside to help with my son’s University fees so I looked into a loan. I noticed that the rates advertised by the banks often increased when I rang up which put me off. Then someone suggested Glasgow Credit Union. I was delighted with their service and had to double check that the low interest I was paying was correct!

“Credit unions aren’t just an oasis for those struggling to qualify for high-street borrowing. Some of these non-profit financial savings and loan co-operatives can be best-buys for those looking to borrow smaller amounts.”