Recently we’ve been calculating the positive impact our savings and loans services have on your pocket. We thought you might be interested to know what we found.
The credit union’s affordable loan products save our members money on interest compared with the same amount borrowed elsewhere.
Our average loan is £1,000 borrowed over 12 months. Aside from bank overdrafts – which now charge APR rates of around 40% – the only lenders who would look at a loan of this size are expensive moneylenders.
The table below shows a comparison of what the credit union charges on our average loan compared with some of the common moneylenders we see our members using;
Based on comparing our rates to the mid-table Bamboo, we conservatively estimate that our lending during the financial year 2019/20 saved our borrowers a pretty impressive £300,000 in interest they would have otherwise paid.
Our members get the savings habit – 71% of borrowers become regular savers with us!
We don’t just save our members money on interest – we also help our members to get into a regular savings habit which helps our members avoid the cycle of debt that all too many fall into.
We ask all our borrowers to save while they repay their loans and this Save As You Borrow method has been shown by independent researchers at the Fairbanking Foundation to create new savers – while only 26% of those the Foundation spoke to were saving regularly before borrowing from a credit union, 71% were saving regularly after that first credit union loan.
As a credit union, this is what we’re all about
– Saving you interest and helping you save.
But we’re not sitting still – right now we’re undergoing a major project to think about how we help our members today, and how we might do even more to help you in the future. And we want you to be part of it.
So keep your eyes peeled in June for a survey we’ll be running to give you the chance to shape our future and help us decide how we help you even more.