The Manx Credit Union has launched a range of loans for its members.

In addition to the standard basic loan introduced last year, credit union members can now take advantage of a loyalty saver loan available at an interest rate of 3.4% p.a. and a ’save as you borrow’ loan that encourages members to build up their savings at the same time as making loan repayments.

With this loyalty saver loan members are able to borrow double the amount they have saved at half the interest rate of the credit union’s Basic Loan. This will be attractive to members who have already built up some savings or who placed a lump sum in their savings account when they joined. Under Manx Credit Union rules members can borrow up to £5,000 plus the value of their savings. So if a member has saved £5,000, for example, they can borrow up to £10,000. Interest is calculated at a simple annual rate of 3.4%.

The save as you borrow loangives members the option to grow their savings at the same time as repaying their loan.

So, for example, if a member borrows £2,000 and repays at £200 per month, after 21 months they will have paid off their loan and have £2,000 saved.

Repayments are easy to calculate as you divide by ten the required loan which in this example would be £200 monthly (total interest £200.00). Interest is calculated at a simple annual rate of 5.6%.

The starter loan of up to £500 is available to help when emergencies occur and money is needed quickly.

This can be applied for by making an appointment to see one of the Manx Credit Union’s loans officers. Interest is calculated by adding 1% monthly to the outstanding balance which uses a simple annual interest rate of 6.87%, the same rate as the credit union’s basic loan.

Payments on all loans can be made weekly, fortnightly, four-weekly or monthly.

Payroll deductions for both loan payments and savings can be arranged with employers.

There are no hidden costs and no early settlement fees.

Eligible credit union members aged between 18 and 80 also benefit from free loan protection coverage that protects their families from additional financial burden in the event of death.

David Talbot, chairman of the Manx Credit Union, said the new loans give credit union members a valuable and affordable choice when planning their finances,

’The loans take into account the different circumstances and goals that our members may have, and reward saving in line with the credit union’s aims to encourage responsible personal financial management,’ he said.

’We treat all our members as individuals and take their personal circumstances into account when assessing their ability to repay. Our members can also benefit from our Budget Buddies service which will help them review their income and outgoings to ensure they can stay on track with their payments.’

Manx Credit Union loans are subject to terms and conditions and applications are subject to review and credit checks where necessary.

Membership of the Manx Credit Union is open to all Manx residents aged 16 and above. Members aged 18 and over can apply for a loan.

To become a member or apply for a loan, contact the Manx Credit Union at Nadine House, 13 North Quay, Douglas, IM1 4LE, call 619459 or email [email protected]. You can also visit www.mcu.im/loans to apply online.

Examples quoted are for illustration only. Personalised quotations are prepared on application.