Child Benefit Savings and Loan Plan

Child Benefit Savings and Loan Plan

Helping families make the most of their money

Join Eastern Savings & Loans and apply for a £500 loan immediately

With our Child Benefit Savings & Loan plan, you can save for holidays, Christmas or any of life’s little extras at the same time as repaying your loan. To be eligible for this plan, join the credit union and arrange to pay your Child Benefit into your credit union account.

  • Loan repayable from your Child Benefit
  • Repayable at £12 per week over 50 weeks (Total repayable - £592.12)
  • Fixed interest rate – 42.6% APR
  • Withdraw from your savings whenever you need to

Our child benefit savings and loans plan gives you access to a lump sum when you need it while saving up your child benefit for a rainy day

How do I save?

If you take out a £500 loan and pay it back over 52 weeks you could save up your child benefits as shown below.

If you have 1 child and your child benefit is £20.70 per week:

  • You will build up £8.70 per week in savings in addition to your £12 loan repayment, by the end of the loan you will have a lump sum of £435.00.

If you have 2 children and your child benefit is £34.40 per week:

  • You will build up £22.40 per week in savings in addition to your £12 loan repayment, by the end of the loan you will have a lump sum of £1,120.00.

If you have 3 children and your child benefit is £48.10 per week:

  • You will build up £36.10 per week in savings in addition to your £12 loan repayment, by the end of the loan you will have a lump sum of £1,805.00.

Note: If your child benefit is paid 4 weekly the loan will take 51 weeks to repay and total interest payable will be more.

Step 1: Join & apply online or Download, print and complete the Loan Application (along with a Membership Application if you're not already a member). Please write your 10 digit Child Benefit reference number on the front of the application form (you'll find this on the notification letter or other papers you have from the Child Benefit Office).


Step 2: Provide two or three acceptable items of identification (if you aren't already a member).


Step 3: Provide two months of bank or Post Office statements showing income regularly going in.


Step 4: Once your loan is approved, you'll need to call the Child Benefit processing centre on 0845 302 1444. Tell them that you want to pay your benefits to the Credit Union and give them our bank details: Co-operative Bank, Sort code: 08-92-50 Account number: 50000788.


Step 5: When your Child Benefit payment hits your account, let us know and we'll prepare a Loan Agreement form for you to sign. We'll issue your loan funds into your nominated bank account the same working day Head Office receives your Loan Agreement.


All loans provided by Eastern Savings & Loans Credit Union are subject to status and our lending policy. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised.

Who can apply for the Plan?

You must:

a) be a member of Eastern Savings & Loans Credit Union,

b) be aged over 18,

c) have your Child Benefit paid into your Credit Union Membership Account until the end of the Plan.

How do I repay the Loan?

Your Loan will be repaid with your Child Benefit payments which will need to be paid into your Credit Union Membership Account.

How do I save with the Plan?

When your Child Benefit is paid into your Credit Union account, your loan payments will be deducted and the remaining funds will be transferred into your savings.

Can I withdraw my savings?

Yes, you can withdraw your Child Benefit savings as per our Membership Account Terms & Conditions.

Can I save separately to the Plan?

Yes. You can still save with additional monies and also open other Credit Union savings accounts.

How can I apply for the Plan?

Simply complete the Credit Union Loan application form (marking your 10 digit Child Benefit reference number on the front) and provide proof of your income (see below). If you’re not already a member, you will need to join and provide at least two acceptable proofs of ID at the same time.

What will you need as a proof of my income?

Recent bank or Post Office statements, showing at least two months’ worth of income.

Do I need to be employed to apply for the Plan?

No, as long as you can provide proof of regular income as stated above.

Do you do a credit check?

Yes. Each Loan application is assessed on an individual basis and takes into consideration a variety of factors including the affordability of the Loan, previous savings and borrowing patterns with the Credit Union, credit history and so on. Information on how we use Credit Reference and Fraud Prevention Agencies to check your credit history is supplied separately on request and on our website.

How long does it take to make a decision?

Once your application is complete with all supporting documents, we aim to make a decision within 5 working days. It may take a little longer at busy times such as Christmas and holiday seasons.

How much can I borrow on the Plan?

You can apply for a Loan up to £500.

Do you offer joint Loan accounts?

Not currently.

How often must I make repayments?

According to the frequency of when you receive your Child Benefit (Weekly or 4-weekly).

How do I collect my Loan money?

We can transfer money to your bank account the same working day. If you want to use your Loan money to pay any existing credit or bills, we can arrange to pay these for you.

What interest do I pay?

42.6% APR.

How is interest applied?

It is applied to your Loan daily and calculated on the outstanding balance. This means that if you settle your Loan early you will pay less interest.

What term do I pay my Loan over?

Over one year.

Are there any penalties or hidden charges for clearing my Loan off early?

No.

What happens if my Child Benefit stops or is no longer paid into the Credit Union?

As you will still be liable to make your Loan repayments, you will need to select an alternative method of payment such as bank standing order or Direct Debit.

How often will I get a statement?

Statements are provided upon request, or you can check your balance by registering with us on our website.

What if I cannot afford my repayments?

Get in touch with our Credit Control department without delay to discuss a reduced payment plan. Failure to keep up repayments could have a serious effect on your credit report and ability to obtain future credit.

What about insurance?

We don’t offer insurance as such, but your Loan may be covered by our free Members’ Death Benefit Scheme.

Updated 12.5.17

All loans provided by ESLCU are subject to status and our lending policy. Applicants must be aged over 18. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised. To find out more about how we use your data to help us make decisions on loans please read our Privacy Policy.