FAQs

How long does the loan application process take?
It usually takes three to five working days from receipt of your application at one of our branches.
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Do I need to have savings before I can apply for a loan?
Yes. We only lend to members and membership is granted to regular savers. This is very much within the ethos of the credit union movement.
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How much do I need to have in savings before I can apply for a loan?
For a loan up to £5,000 over a maximum period of 5 years, you only need to be a member with a minimum of £10 savings. For a larger loan, you are entitled to apply for 20 times the level of your savings balance.
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How long do I need to have an account before being eligible to apply for a loan? You may apply for a loan at the same time you open a savings account. There is no qualifying period.
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What is the current APR? On our Resourcer fixed term loan, the rate is 8.5% typical APR. On our Responder revolving credit facility, the rate is 11.68% typical APR.
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I think I can get a lower APR on the high street. Why is that?
You may see lower APRs advertised but we recommend that you check whether the rate applies to all sizes of loans. Often, the lowest rate from major financial institutions applies to the higher value loans.

Also, check what you will actually pay monthly and what is included. We charge interest on the reducing balance only and do not apply interest on the total loan for its full duration.

Our loans include life cover at no extra cost up to age 65 (conditions apply) and have no arrangement fees nor penalties for either early settlement or lump sum repayments.

We offer payment protection insurance (conditions apply) to cover accident, sickness and unemployment or just accident and sickness. The charge for this is not included in the loan value and, therefore, does not incur interest.

In addition, with Police Credit Union, you build up savings so that you can pay off your loan early or, if your loan runs its full term, you have a savings balance to use as you wish.

As we are a regulated credit union, you know that you are not paying for outside shareholders or profits. All surpluses, after operating costs and allocation to reserves, are used to pay dividends to savers. It’s all for the police family.
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Are there any penalties for repaying my loan off early?
There are absolutely no penalties for paying off a loan early. If you are in a position to do this, it will benefit you because you will not pay interest for the full term.
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If I pay off a lump sum, will my repayments be reduced?
Your repayments will remain the same but this will allow your loan to be cleared at an earlier stage. You will, therefore, pay less interest on the loan than was originally calculated.
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Can I access my savings whilst my loan is running?
Once you take out a loan, you cannot have access to your Rewarder account, unless it is to pay off the balance of your loan. You can, of course, open a second Rewarder account for savings and access whenever you wish.
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Do you perform a credit check?
Yes. We reserve the right to perform a credit search. This is to help ensure we are lending sensibly and protecting the interests of the members who save with us.
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My credit history is not particularly good. Will this affect my application?
We will not necessarily decline to lend to someone who has experienced financial difficulty in the past. All loan applications are assessed individually on their own merits. We must be satisfied, however, that you can afford to meet the repayments before a loan is approved.

If a loan application is declined, we may still be able to assist you in managing your finances.
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Does it matter what I want to borrow the money for?
Not at all. We will lend for any purpose.
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May I borrow to pay off other debts? We do consider loans for debt consolidation to enable you to put all your various debts under one repayment. This may be particularly useful, if you have credit card and store card debts which normally carry much higher APRs than our Resourcer or Responder loans.
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May I insure against having an accident, being ill or losing my job?
Yes, as we offer two types of cover, either accident, sickness and unemployment or just accident and sickness (conditions apply). You pay the charge monthly with your loan but the charge does not incur interest.
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What happens to my loan in the event of my death?
Loans are covered by life cover at no extra cost up to age 65 (conditions apply). In the event of a claim, loans are paid off without further liability. At the same time, savings balances are doubled and paid to the nominated beneficiary or estate.
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What is the maximum I may borrow on each type of loan?
With the Resourcer fixed term loan, you may borrow up to £20,000 over 5 years. With the Responder revolving credit facility, you may borrow a maximum of £12,000.

You may spread the total of £20,000 over four loans, that is two Resourcers, one Reloader and one Responder at the same time.
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When the loan and the savings reach an equal amount, will the loan be paid off automatically?
We do not automatically access your savings account to settle your loan. If you wish to use your savings to settle your outstanding balance, please advise us.
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