New products supporting Bolton’s students
23 Sep 15
Hoot Credit Union has introduced credit union services to students at the University of Bolton.
Students attending this year’s Welcome Fair were offered two new products aimed at helping students to manage their finances.
The “Spend, Save, Borrow” product allows students to save as much as they can afford in their first two years of study, and then apply for a Hoot loan secured against savings in year 3. The fully secured loan would be at the rate of 8.7% APR.
This savings and loan product aims to particularly support mature students or students with families who may be in receipt of loan, grant or bursary plus salary or benefits to supplement income. In year 3 of study there is no grant or bursary available to students, so encouraging students to save in years 1 and 2 to build up a pot of savings would help to reduce the worry and stress about completing their studies.
The “Wise Up! – Student Loan Day Loan” offers a maximum loan of £300 over 1 or 2 months, repaid at the next due payment day as a viable alternative to ‘loan day loan’ products currently offered to students by high cost lenders. Similar products currently on the market charge over 1,000% interest. The Hoot product, charging 42.6% APR, represents a saving of £80 on a £200 loan.
Hoot Credit Union Manager David Batten said: “We are excited by this opportunity to demonstrate how credit unions can offer both affordable and ethical financial products tailored to suit the needs of a particular section of the community.
“By working closely with the Students Union we have been able to identify and develop products and services for mutual benefit and we look forward to working more closely with the university in the future”