Many of our members have experienced painful income shocks and increasing financial pressures as a result of the coronavirus pandemic. With short-term solutions such as furlough and payment breaks soon coming to an end, members are turning their minds to consider: what next?

As we look to the future, many of us are feeling an escalating sense of panic, particularly when it comes to money. However, letting panic govern financial decision-making may lead thousands to fall into the trap of expensive loan providers, overburdening overdrafts and high interest credit cards. And it will only mean further financial difficulty in the long-term.

We want to help our members avoid this and we’ve been working with our GMB colleagues to consider how we can best support you. Our Member Assistance Package (MAP) has been well received by members, however we must address the ‘new normal’ and create better financial outcomes for our member. So, we’ve gone even further to improve every aspect of our loan offering to help you during the uncertain time ahead.  We’ve created two new loans too, all to help you gain access to super-fast, flexible and affordable credit that won’t trip you up. As a valued GMB member, you can now benefit from:

  •         Lower interest rates
  •         Increased credit limits
  •         Extended repayment terms
  •         New loan products
  •         More flexibility in managing loans
  •         Payment breaks
  •         Quick access to finance when you need it

GMBCU are here to offer members better financial alternatives in these trying times. We have evolved and improved our loan offering for long-term support that will help you adjust to the ‘new normal’ and help you avoid more expensive funding options like overdrafts, credit cards or pay day loans.

Our loans are focused exclusively on improving the financial wellbeing of GMB members, so you can rebuild your finances with confidence.

In this blog, we talk more about each of our loans and why they may be appropriate for your specific circumstances. This includes:

  1. Cash Flow Account
  2. Family Credit
  3. Consolidation Loans
  4. Member Loans
  5. Handy Loans
  6. Save Secure Loans
  7. Top Up Loans
  8. Save and Borrow Loans

Keep reading to find out more or click here to go to our loan calculator where you can work out a plan that’s manageable for you.

 

 

1. Cash Flow Account

Key facts: 

      Pre agreed credit limits from £500 up to £3,500

      12.7% APR

      Minimum withdrawal £50

Cash Flow Limit

Min Monthly Payment

Min Monthly Savings

£500

£16.00

£5.00

£1,000

£32.00

£5.00

£1,500

£48.00

£5.00

£2,000

£64.00

£5.00

£2,500

£80.00

£5.00

£3,000

£96.00

£5.00

£3,500

£115.00

£5.00

 

Consider ditching your credit card or overdraft for this very affordable alternative. Benefit from a 12.7% interest rate (compared to the astronomical 50% + offered by most providers in the market).

Our new Cash Flow Account is a revolving credit facility where you have the flexibility to access funds up to a pre-agreed limit whenever you need them. You have the certainty of fixed monthly repayments with no hidden fees so you always know where you stand.

It offers significantly lower interest rates and greater flexibility whilst providing quick access to finance exactly when you need it. Get through the month and make ends meet with our market-leading, low rate.

GMB members only need to apply once for the Cash Flow Account with 18 month reviews just to ensure you’re on track financially.

 

2. Family Credit

Key facts:

      Loans from £200 to £1,200

      18-month maximum repayment period

      34.5% APR

      Top up loans available

Provider

Amount Borrowed

Repay months

APR%

Total paid

Cost of credit

Savings Option

GMBCU FC

£1,000

12

34.5%

£1,168.82

£168.82

Yes

118118

£1,000

12

99.9%

£1,428.00

£428.00

No

Provident

£1,000

12

299.3%

£1,872.00

£804.56

No

Satsuma

£1,000

12

1575%

£1,992.00

£992.00

No


GMB Family Credit works like an affordable revolving loan and it is repaid using your Child Benefit which is paid direct to your GMB Credit Union account. It helps you smooth out those family costs such as back to school expenses or the many domestic costs which confront all of us, without losing control.

As Family Credit is repaid using Child Benefit, both parties have greater security when borrowing. So, even members with lower credit scores, are still eligible for this loan. Interest is charged at 34.5% APR which is very affordable for small short-term borrowing.

 

3. Consolidation Loan

Key facts:

      Loans from £3,000 to £15,000

      72-month maximum repayment period

      6.5% APR to 12.7% APR

Swap and drop high-cost borrowing - such as credit cards, store cards and overdrafts - with a Consolidation Loan. It allows you to settle several existing debts so that you have one single monthly repayment to make each month.

This gives you more control over your monthly repayments as you spend less time balancing different repayments. Plus, budgeting is simpler and it’s easier to improve your credit score rating (one monthly repayment is much harder to miss than several!).

Interest rates on our Consolidation Loans range from 6.5% APR to 12.7% APR. Combine all your debt into one to save yourself money and reduce stress. 

  

4. Member Loan

Key facts:

      Loans from £2,000 to £20,000

      Payment breaks available

      72-month maximum repayment period

      3.5% APR to 26.8% APR

Our Member Loans are unsecured loans with fixed repayment periods which can be used for any legitimate purpose. GMB members can apply for a loan at any time regardless of their length of membership or level of credit union savings.

If you’re struggling to keep up or your circumstances change, you also have the option of repayment breaks – just get in touch and we’ll help you work out a plan that’s manageable for you.

Our Member Loans are fast, fair and flexible, with competitive interest rates that range from 3.5% APR to 26.8% % APR.

 

5. Handy Loan

Key facts:

      Loans from £200 to £2,000

      30-month maximum repayment period

      26.8% APR to 34.55% APR

It’s as it says on the tin - our Handy Loans are super convenient, allowing you to borrow small amounts to help smooth out those spikes in household expenditure. You can repay your Handy Loan over short periods providing an affordable alternative to payday loans, doorstep lenders and the many other high-cost loan providers.

Handy Loans users are required to save a minimum of £5 per month, and interest rates range from 26.8% APR to 34.55 % APR.

 

6. Save Secure Loan

Key facts:

      Loans from £2,000 to £20,000

      7-year maximum repayment period

      3.00% APR

      No credit checks

When you take out a Save Secure Loan of between £2,000 and £20,000, your savings are locked as security. This means that your savings balance must always cover the balance of your Save Secure Loan. Locking in your savings opens you up to our lowest interest rate of just 3.00% APR. There are no hidden fees, charges or repayment penalties, as well as no subsequent restrictions on top up loans. So, make the most of your savings by supporting your borrowing needs at the lowest of rates.

 

7. Top Up Loan

Key facts:

      Existing loan balance plus the extra amount you wish to borrow

      Only one single repayment on the new topped up loan

      Available on all our loans

Need to acquire additional borrowing with an existing loan in place? Our Top Up Loans are a convenient solution. Rather than creating two loans with two repayment plans, you can simply increase your existing loan by the top up amount required, creating a single new loan.

Please note that the new topped up loan may have a different rate and repayment term - this will be clearly explained before you move forward.

 

8. Save and Borrow Loan

Key facts:

      Loans from £200 to £1000

      30-month maximum repayment period

      34.55 % APR

Struggling to improve your low credit rating? Our Save and Borrow Loan has been designed to help you get back on your feet. Improve your credit rating and increase your chances of getting loans, credit cards or mortgages at better rates and deals (including GMB’s full loan offering).

Interest is charged at 34.55% APR with no hidden fees, charges or early repayment penalties. Save and Borrow members can also apply for Top Up loans to add to their current Save and Borrow loan. Additionally, they can view and manage their credit report at gmbcu.creditview.co.uk.

 

Fast, simple online application with paperwork kept to a minimum. 

Want to apply for a GMB loan? You have two options:

  1. Apply through Nivo
  2. Apply through our website

Nivo is the fastest, most convenient way for you to communicate on all Credit Union account-related matters, including applying for new or top up loans. It is a completely secure, fully-encrypted instant messaging app for Android and iPhones. Applying for a loan through Nivo is paperless and it will lead you through the application process seamlessly with an online e-signature completing your agreement form.

You can also apply for loans through our website. As with all our applications it is completely secure, however website loan applications will take slightly longer to process.

For more information on all our loans, please visit our loans page here. Also, if there are any questions we haven’t answered in this blog, feel free to give us a call on 0161 486 1777 or send us an email to info@gmbcreditunion.com.