The Co-op Credit Union is marking Co-operatives Fortnight and its ongoing commitment to supporting Coop colleagues during the Covid 19 crisis by launching a new Family Loan product. The Family Loan offers those with children the opportunity to access a revolving credit account of £1,000 at competitive rates of interest using Child Benefit to make repayments.
The Family Loan product is accessed via the credit union’s new secure messaging app, Nivo, which makes the application process quick and convenient. It has proven popular so far with around 70 loans agreed since a soft launch in mid-May and fantastic member feedback with 100% of respondents to a survey of Family Loan borrowers saying they would recommend it to a friend. Survey feedback included:
“Extremely easy to set up and a great way to get the funds you need”
“Would recommend – brilliant service”
The Family Loan is designed to reduce families’ costs of borrowing, use the reductions in interest to start to build a savings habit and over time to encourage disengagement with high cost credit in favour of credit union borrowing facilities to build long term financial resilience and well-being. During the Covid 19 crisis, the facility is a financial lifeline in the face of the economic uncertainty caused by the pandemic.
Whereas the credit union’s core savings and loans proposition relies upon an active payroll deduction arrangement to maximise the benefits of the credit union for colleagues, the Family Loan has the advantage that it can be offered without the need for payroll integration and the credit union hopes that this will be an opportunity for the wider cooperative retail sector to explore how the credit union can support their people before taking the plunge with a full payroll deal.
Commenting on the Family Loan launch, Matt Bland, The Co-op Credit Union’s Chief Executive, said: “We are excited to be formally launching the Family Loan product during Cooperatives Fortnight. The product is part of our ongoing commitment to supporting Coop colleagues to better afford their lives and become more financially resilient through reducing the cost of credit and building savings. We are delighted with the feedback we have had from members so far which is testament to how well the facility supports families to take control of their finances.
“We are launching a marketing campaign around the product in the second week of Cooperatives Fortnight and we hope that this will provide an opportunity for us to build on our proud 20 year history supporting coop colleagues by reaching more colleagues and deepening our relationships with coops across the sector. We are keen to hear from any coops that would like to offer our services to their people and would like to help us promote the Family Loan to their colleagues.”