FAQs

If you’re a GMB Credit Union member or family member between the ages of 18 and 70, you can apply for a loan anytime, without needing to save first. GMB Credit Union makes the process simple with an easy online application and fast decisions. We don’t charge any loan fees or early repayment fees. We keep paperwork to a minimum, and if you need extra funds later, you can ask for a top-up loan. 

GMB Credit Union is a responsible lender that offers loans between £200 and £20,000, focusing on the financial well-being of our members. Our main goals are to help members save money and manage their household budgets effectively. Members only pay interest on the remaining outstanding balance, which means interest charges decrease as you repay your loan. There are no hidden fees or early repayment charges. 

For larger loans, we offer a three-month repayment break to help members handle unexpected events. These breaks can be taken one month at a time or all at once.  

So far, GMB members have borrowed over £75 million from the GMB Credit Union. We regularly compare our loan rates with the market and provide a price match promise to make sure our members get the best deal on their loans. 

Applying for a Member Loan is simple and consists of three steps: 

1. Fill out your application online using our mobile messaging app or through our website. 
2. We’ll assess your application, perform a credit reference check in most cases, and send you a loan offer via your preferred communication method. 
3. When we receive your signed loan agreement, we’ll transfer the funds to your chosen bank account through faster payments. 

We aim to minimise paperwork and use our mobile app for electronic signatures. We’ll respond with an offer within two working days for new applications and within one working day for Top Up Loans and Save Secure Loans. 

All our loans are based on affordability, so as a responsible lender, we need you to verify your income. We might also request that you connect your bank statement through Open Banking, which helps us understand your household expenses. 

By doing this, we protect the Credit Union’s funds and avoid putting too much financial pressure on our members. This extra information allows us to make fairer loan decisions, without relying solely on historic credit reference reports. 

We want to make sure members can comfortably afford their loan and manage the monthly repayments. We request information about household income to understand how much disposable income is available. This means we consider a partner’s income when evaluating a loan. However, the loan will be in the applicant’s name only, and the partner won’t be responsible for repayments. If members would rather apply for a joint loan, we can arrange that too.  

When you request a loan top-up, we create a new loan that combines the remaining balance of your current loan with the additional amount you want to borrow. Then, we pay off your old loan. The new loan may have a different interest rate, term and monthly repayment than your initial loan, but we’ll explain all these details at the time. 

Top-Up Loans are a popular, convenient and flexible way for members to increase their Credit Union loans. We offer them at our discretion, and you must be up to date with your existing loan repayments to apply. 

You can ask for a Top-Up Loan after you’ve repaid at least one third of your first loan’s balance. After that, you can request up to three Top-Up Loans in a year. Members can apply for a top-up using a short application form on our website. We might ask for additional information, and Top-Up Loans depend on each member’s individual situation.  

It’s important not to overlook missed loan payments and falling behind on repayments, as they can negatively impact your credit score and make it more difficult to obtain credit in the future. 

We know that life events can sometimes impact members negatively, often through no fault of their own. So, please talk to us as soon as you can, and we’ll discuss options to help you repay your loan and improve your financial stability. 

These options might include pausing loan repayments for a set period or lowering your regular repayments. Keep in mind that reducing or deferring repayments can result in a longer repayment time and possibly higher costs. These agreed-upon measures might also show up in your credit file. 

Our members can rely on our loan protection benevolent fund when they need help the most. Members are usually covered until their 70th birthday for outstanding loan balances up to £5,000. To learn more about the Loan Protection Scheme and its conditions, please call us at 0161 486 1777, email info@gmbcreditunion.com, or send us a message through our mobile app. 

This revolving loan service is for established GMB Credit Union members (those with at least three months of membership) receiving child benefit. Immediate family members, like partners, are also eligible if they receive child benefit. 

Family Loans offer members receiving child benefit access to a revolving loan of up to £1,200 if the child benefit is paid directly into a GMB Credit Union savings account. The maximum repayment period for Family Loans is 18 months, and once you’ve repaid one-third of your Family Loan, you can request a top-up. We encourage all members to save when possible, and Family Loan members must maintain a minimum savings balance of £5 for GMB Credit Union membership. Interest is charged at 30% (34.5% APR), with no fees or charges. You can pay off your loan at any time without any additional costs. 

To be eligible, you need to be an active GMB Credit Union member with at least three months of membership, or an immediate family member. You must also receive child benefit and can apply for Family Credit through our secure messaging app. 

To finish the application, you’ll need proof of identity (like a driver’s license or passport) and proof that you receive child benefit (such as a copy of the award letter from the Child Benefit Department or a bank statement). 

As a responsible lender, we perform credit reference checks. But our goal with Family Loans is to help as many members as we can, even those with lower credit scores. Unfortunately, if you’re in Bankruptcy, have a Debt Relief Order, IVA, Debt Management Plan, or County Court Judgments (CCJs) in the past six months, we won’t be able to provide you with family credit. 

When we have agreed your loan, please contact the child benefit office on 0300 200 3100 and request for your child benefit to be transferred to your GMB Credit Union account. We’ll provide you with all the details including your Credit Union account number and our bank account details. 

After completing your loan application and setting up the transfer of your child benefit to us, we’ll get in touch as soon as the first benefit payment arrives in your Credit Union savings account, which is opened automatically when you apply for a loan. We’ll then process your loan and send it via faster payments to your chosen bank account. 

You can ask for a top-up on your Family Loan once you’ve repaid at least one third of the initial loan balance. You can request up to four top-up loans in a single year. If your situation has changed, we may ask for more information. Top-up loans depend on each member’s individual circumstances and are granted at GMBCU’s discretion. To request a Family Credit top-up, use our secure mobile app. 

You can top up your existing Family Loan, but if you have built a good relationship and account history with the Credit Union and meet our lending criteria, we might be able to offer higher borrowing amounts through a Member Loan

We encourage all members to save when they can, and Family Credit members must maintain a minimum savings balance of £5.00 for GMB Credit Union membership. This balance will be returned when an account is closed. 

Any surplus child benefit funds will be automatically returned to you.

You can access your savings via our secure mobile app or members area by going to the ‘My Account’ Section on our website. 

You’ll still be liable to make your loan repayments. Contact us and select an alternative method of repayment such as Direct Debit or standing order. 

Members with a low credit score, who may not be eligible for our standard Member Loan, can show their creditworthiness and improve their credit rating by saving with the Credit Union for five consecutive months before borrowing. 

Initially, we’ll offer Save & Borrow Loans based on 2x a member’s savings balance. We use the savings as security and evidence that a member can easily manage the monthly loan repayments. 

The table below displays the cost of a Save & Borrow Loan over 12 months and the minimum amount needed to save for five consecutive months to qualify for a Save & Borrow Loan.

[Insert table] 

Based on individual circumstances, future Top-Up Loans or subsequent loans might be considered at 3x a member’s savings balance. After establishing a good working relationship and, ideally, an improving credit rating, we would aim to transition a member to our standard Member Loan package, where they can enjoy lower interest rates. 

The accumulated savings belong to the member, and access to savings is only restricted to support a member’s borrowing. 

• Minimum loan: £250, Maximum loan: £2,000 
• Members need to save for 5 consecutive months 
• Minimum monthly savings amount: £25.00 
• Save & Borrow members should pay via direct debit 

• First Save & Borrow loan: 2x savings 
• Lump-sum deposits can be made but usually won’t count towards the available loan amount 
• Subsequent top-ups or new Save & Borrow loans may be 3x savings, depending on individual situations 
• Save & Borrow accounts will be reviewed every 12 months, aiming to transition members to standard loans