We’re sorry, consolidation loans have been temporarily suspended during the Covid-19 crisis. Please see our FAQ page for more information here.
Interest 2% monthly (26.82% APR)
Repayment periods from 6 to 60 months
No fees, early repayment charges or penalties
Payments are made directly to the creditor
In order to receive a loan through North London Credit Union you must be a member. You can apply to join and borrow at the same time and membership is free. If you are already a member, please log-in to your account and apply via the member’s area.
We carry out an assessment of the affordability of loan repayments and we also obtain a credit report to review each applicant’s history of managing credit.
All loans are made to you as an individual and you as the applicant are fully responsible for ensuring repayments are made.
Repayments on your loan must be made by direct debit or payroll deduction (available from selected employers).
What information do I need to provide?
You will need to send us 3 months’ (90 days) of recent bank statements for current accounts in your name (including joint accounts).
We will also need to obtain proof of your right to work or receive benefits in the UK if that has not already been received as ID (we will obtain this from everyone regardless of whether or not we think they were born in the UK. This is to ensure that payments can be made throughout the term of the loan).
If you have any questions about loans, please feel free to call us on 020 8366 8244, option 1.
A debt consolidation loan is not the right option for everyone.
Consolidation is intended to make your finances more manageable over the longer-term, meaning that instead of having multiple loan repayments to manage or paying more in interest than the amount you borrowed, you will have just one, affordable payment each month. It is not intended to clear your debt to enable you to borrow more.
As with all our lending, we will need to establish that our loan repayments are affordable for the term of the loan and that the applicant has a reasonable history with managing credit (which we assess by carrying out a credit reference agency search). We will assess whether consolidating your existing debts would make financial sense for you in the long term.
With a debt consolidation, we will pay your creditors directly wherever possible and you will be expected to close revolving credit facilities (credit cards, store cards and catalogues) as a condition of accepting the loan, so we will need to obtain some additional information when the loan has been approved (we will never ask for your online account log-in details and there are no admin charges, set-up fees or costs to pay, other than interest, which is incorporated into your monthly repayment).
We will not lend for any purpose if you:
Are in an Individual Voluntary Arrangement (IVA)
Have an Debt Relief Order (DRO)
Are in a formal Debt Management Scheme or Debt Management Plan
Are an undischarged bankrupt
Have an Protected Trust Deed
We are very unlikely to lend if you have a history of taking out credit and failing to repay it, usually indicated by outstanding County Court Judgements (CCJ) and defaults on your credit record.
Please call us on 020 8366 8244, option 1, if you would like to talk to us before making an application.
If your debt is unmanageable and you are finding it hard to meet your priority living costs, such as housing, utilities, council tax, etc. you need to obtain proper financial advice, which is available for free from debt charities, such as StepChange or your local Citizen’s Advice office. Further information can be found here.
The FairLife Personal Loan Mark
North London Credit Union has been awarded The FairLife Personal Loan Mark which has been created to ensure that FairLife loans are well designed in the interest of the consumer. Firms carrying the Mark today are demonstrating, in a highly visible manner, their commitment to putting the wellbeing of the public at the heart of their business.
Lending is dependent on status and affordability. A search of the applicant’s credit history is made on all loan applications, except loans secured against savings. Information on repayments is reported to our credit reference agency and it may damage a borrower’s credit record should repayment obligations not be met.