What is a Child Benefit Loan?
To apply for this loan you need to join the Credit Union & have your Child Benefit paid in to your credit union account. You can apply the same day as you join & if approved (all loans are subject to an affordability & a credit check), we will send you an email & text message when a loan decision is made. It can take up to 3 days for a loan decision depending on demand. If you have an email address we will email the loan agreement for you to sign. Your loan will be available for withdrawal as soon as your first child benefit payment has been received.
- Fixed interest rate during your loan
- Loan paid direct into your bank account
- Decision in 3-4 working days
- Build your credit history
£500 Compared to other lenders
|Lender||Pay Weekly||Weeks||Total Payable||APR||Life Insurance?||Save as you borrow?|
How does a child benefit loan work?
Join the Credit Union and get your Child Benefit paid into your account with us. You can call Child Benefit Centre on 0300 200 3100 to get your Child Benefit paid to your account with us.
Apply for a loan and once approved, sign the loan agreement.
£500 transferred to your bank account.
Your weekly or 4 weekly benefit payment will then be split into two.
1. Loan repayment
2. Remainder into your share account
You can then ask for the remainder to be transferred into your bank account, Christmas club, or left to save, you choose.
It is easy to apply
You can join us online and apply for the loan the same day, all on our website. If you would prefer to do it on paper, you can call us on 03336 000690 to request forms sent in the post. Please complete all the details then return it to us.
You may need to provide proof of your income.
- Payslips/proof of benefits for last three months
- Bank statements for the last three months
- Information on all existing loans, credit cards and other debts.
We may ask you to give us read-only access to your bank statements through our trusted partner Consents.Online, this allows our loan officer to see the past ninety days of your bank statement over a secure connection. Alternatively, you can provide printouts of your bank statements, but this will take a few days longer to process while we wait to receive these.
Note: Loan repayments are still due if you no longer receive child benefit during the term of the loan. Failure to make scheduled loan repayments will lead to arrears action and may affect your credit history.