London Mutual Credit Union

Good:
Members area on their website so you can manage your savings and loan online

Bad:
Can take up to two weeks to get your loan paid so don't apply if you're in a rush

Verdict:
Low interest rates, low repayment rates, no charges or hidden fees - must live or work in the London Borough of Southwark or Lambeth

You must live or work in the London Borough of Southwark or Lambeth 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 and you can apply for a loan after you have started saving with them.

They offer two different loans:
1) SCU Economy Loan £100-£1,500 - 26.8% APR - up to 18 months
2) SCU Premier Loan £801-£3,000 - 13.7% APR - up to 36 months

First you will need to become a member of the union. To apply for a loan, you need to complete the Loan Application Form (see example below), which you can get from their office or a collection point or you can download from their website. You then need to send it into their office. All loans are reviewed by the Loan Officer. They will inform you of their decision as soon as possible and you will be asked to sign a Loan Agreement.

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 or go 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.

Camberwell
Monday-Friday: 9:30am-4:30pm

Peckham
Monday-Friday: 9:30am - 4:30pm

Bermondsey
Monday-Wednesday: 9:30am-4:30pm

Brixton
Monday-Friday: 9:30am - 4:30pm