Cornish Community Banking

Good:
You can apply for a loan as soon as you become a member with them

Bad:
They don't have an online service so you will have to visit an office or collection point to apply

Verdict:
Very low interest rates and repayments, no credit checks but you must live work, or be a relative living in the household of someone who lives or works in Cornwall or the Isles of Scilly

You must live work, or be a relative living in the household of someone who lives or works in Cornwall or the Isles of Scilly to become a member.

Credit Unions offer a few different unsecured loans for any purpose. Their loans are fairly cheap and are based on your proven ability to repay, this is why they do a thorough check of your income and expenditures. You need to be a member but you can apply for a loan straight away! The maximum is £600. After saving regularly for 13 weeks if saving weekly, or 3 months if saving monthly, you can apply for a preferential loan for more money at a lower rate.

First you will need to become a member of the union. To apply for a loan, you must complete the application form that you can download from their website (see example below) and take it into their office along with evidence of your income and outgoings (see list below). The Credit Committee will review your application and they will let you know their decision within 7 days.

Fast Track Loans - has a higher interest rate but you can borrow up to £600 without having a proven savings history. You will need to complete a form detailing your financial circumstance. They need proof of income such as payslips or bank statements. They will also take out a credit report which will incur a £10 administration fee. Applications are considered by the Credit Committee and the loans are granted depending on your credit score.

Preferential Loans - you must have been saving regularly for 13 weeks before you can apply for this loan. It is at a lower rate of 1% per month on the outstanding balance. You will need to provide proof of your income and if this is your first loan with them then they will run a credit check on you.

The process may in some cases take up to two weeks so this is not a good option for you if you need your money quickly. You cannot manage your loan online so if you need to make changes, you need to contact them in writing or pop into a branch. With credit unions, the money you are borrowing is the money of other members, so if you fail to make payments, they take this very seriously. Their opening hours are very limited, which makes it difficult for you to go in to organise all your documents and sign your agreement. On the other hand, they want to help you rebuild your finances if you haven't got a good history. Their rates are extremely low and their repayments are really small each month.

Truro
Monday-Friday: 10:30am - 1:30pm

Penzance St. Johns Hall
Tuesday and Wesnesday: 10:00am-12:00pm

Penzance Penwith Housing Association
Monday and Friday: 9:30am-12:30pm

Newlyn
Thursday: 10:00am-12:00pm and 7:00pm-8:00pm

St Austell
Monday: 1:00pm-3:00pm
Tuesday: 12:00pm-2:00pm
Thursday & Friday: 11:00am-1:00pm