South Manchester Credit Union

Good:
Affordable, flexible and transparent loans tailored to suit your needs

Bad:
No online service so you must visit one of their offices to manage your accounts with them

Verdict:
Small financial business serving the local community for saving and borrowing - must be living or working in Barlow, Moor, Burnage, Chorlton, Didsbury, Fallowfield, Levenshulme, Old Moat, Rusholme, Walley Range or Withington

You must be living or working in Barlow, Moor, Burnage, Chorlton, Didsbury, Fallowfield, Levenshulme, Old Moat, Rusholme, Walley Range or Withington 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 Standard Loan after you have been saving regularly with them for 8 weeks.

They offer 3 types of Loan:
1. Standard Loan: This can be applied for once members have been saving for 8 weeks and the maximum term of repayment is 3 years. There interest ranges between 12.7% and 26.8%, depending on how much has been borrowed.

2. Handiloan: This is for members on a low income with no history of saving with the credit union. The first loan is up to £300 to be repaid over 33 weeks. Further loans of up to £1200 may be available to borrowers who have followed the terms of previous loans. The interest for this loan is 26.8%.

3.Rainy Day Loan: Members with a good history may apply for a short term emergency loan on top of a standard loan. The maximum you can apply for is £1000 and is charged at 26.8% over 6 months.

You need to become a member of the union first. To apply for a loan, you need to complete the Loan Application Form (see example below), which you can get from their main office or a collection point. You can then send it off, along with your proof of income, to their main office. All loans are initially assessed by the Loan Officer and they will contact you to advise you of their decision.

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.

Main Office
Monday & Friday: 11:00am-4:00pm
Tuesday: 11:00am-4:00pm
Wednesday & Thursday: By appointment only

For further details on collection points and opening times, please visit the following link: http://www.smcreditunion.co.uk/page2.html