We understand that you cannot always predict when you may need to borrow additional funds. This could mean you need to add to your current loan before it has been repaid. If you currently have any outstanding borrowing with us, there are two ways in which you could apply to borrow more.
We can set up a new loan for the additional amount you wish to borrow. This will run alongside your existing loan. This would mean you would have two separate monthly repayments. Your old loan would continue to be repaid at the existing interest rate . The new loan, would then be charged at the interest rate offered at the time of application.
Combine your existing loan with a new loan
If you choose to combine your existing loan with your new lending, a new loan agreement will be issued. This is necessary as it will cover the new conditions of the loan including the remaining balance on the loan which you are adding to and the additional amount which you wish to borrow. We will then pay off your old loan and you will only have one loan to repay going forward.
When you borrow additional funds this may be over a different term and have a different interest rate to your current borrowing. This means you may pay a higher interest rate than previously as it will be opened at the current rate available. You could also potentially pay more interest over the term of the loan as if you extend a term this means you pay interest over a longer period. By arranging a top up loan, you are keeping your borrowing to one fixed monthly repayment.
There is no difference to the amount you can borrow regardless of which product you choose. However, total borrowing cannot exceed our maximum unsecured lending limit of £35,000, whether as one loan or several.
Individual product borrowing limits apply, please see the table below for a breakdown of each product.
|Loan product||Can it be topped up?||Maximum amount||Additional information|
|Debt Consolidation Loan||Yes||£15,000 within your first two years of membership, £25,000 thereafter|
|Student Officer Loan||No||N/A||Members can apply for other products as long as total borrowing doesn’t exceed £35,000.|
|Commutation Loan||Yes||80% of your commutation entitlement or £100,000 (whichever is lower)|
|Loyalty Loan||Yes||£40,000||The amount you can borrow cannot exceed the amount you hold in savings.|
|70+ Loan||Yes||£5,000||Must be repaid before your 80th birthday.|
|Holiday Loan||Yes||£10,000||Any top ups can only be be taken over the remaining loan term.|
|Christmas Loan||Yes||£10,000||Any top ups can only be taken over the remaining loan term.|
How do I top up?
You can apply to top up your loan by completing a loan application form. Simply apply for the additional amount you wish to borrow. Part way through the application it will ask if you currently have a loan outstanding with the Credit Union, where you will select “yes”. It will then ask if you wish to top up your existing loan or have two loans running alongside one another. You can choose whichever you would prefer.
If you have any queries or wish to find out your remaining balance on a current loan, you can call a member of our Loans Team on 0161 741 3160.