Credit Union

Credit Unions also offer loans to consumers. You must be a member of a Credit Union before you can take out a loan. Credit Unions are based in the community or workplace and you must be living or working in a particular area or working for a particular employer to become a member. You may need to have saved some money in a Credit Union before getting a loan. Credit Union loans are suitable for short and longer-term needs such as loans for holidays or cars. They are also useful for refinancing other loans. The Credit Union Act 1966 regulates Credit Union loans. The APR cannot be over 12.68% and loan protection insurance is provided on all Credit Union loans. Another advantage of Credit Union loans is that they are very flexible and loan terms are easily negotiated with local credit union officers.