To get a loan from a credit union, you might need to have been a member for a certain period of time, or have already built up some savings in a credit union account.
In England, Scotland and Wales, there’s a cap on the amount of interest that credit unions can charge on their loans of 3% a month or 42.6% a year APR. The cap in Northern Ireland is 1% a month, or 12.68% a year APR.
There are no hidden charges with credit union loans and no penalties if you repay the loan early.
As with any lender, you’ll be expected to repay your loan as agreed.
Most credit unions can lend for up to a maximum ten years on an unsecured loan and up to 35 years on a secured loan (where they’ll lend against something like your property or car). Not all credit unions will offer longer term loans.