OUR LOAN PRODUCTS
- Sensible interest rates – with a maximum of 3% per month (42.6% APR).
- No hidden charges or unexpected penalties – for example, you can pay your loan off early without penalties if you are able to.
- All loan applications are considered on a case-by-case basis; loans (including top-up loans) are not automatically approved.
- All members may apply, but your circumstances will determine what loans may be accessible. Your chance of approval will depend on the additional information you provide.
- Once a loan has been granted, you will not be able to withdraw your shares, unless the value of your shares is in excess of the loan balance repayable and your payments are not in arrears.
For Example- If your loan balance is £500 and you have Share 1 savings of £580, you can only withdraw from your Share 1 savings the amount of £80
( The balance greater than the loan balance)
- Swan will expect you to continue to save during the loan period through a regular transfer into your shares account. The minimum Regular Savings Commitment (RSC) is detailed on the page for each product type (please follow the links below). This will help ensure you have enough savings to avoid unnecessary debt and plan for your future, and it provides security against borrowing.
To allow Swan to confirm the affordability of your loan / top-up loan application, we may ask you to provide an Open Banking Link or bank statements. You may need to provide all of your accounts for us to verify the information you provide on the application is true and accurate.
When applying for a loan or a top-up loan we may carry out a credit reference search. We do this to assess creditworthiness and product suitability, check your identity, manage your account, trace and recover debts and prevent criminal activity.
We will also continue to exchange information about you with Credit Reference Agencies on an ongoing basis. This may affect your ability to get credit.
Once your loan application has been received, it will be assessed normally within the next 10 days. Please note this timescale is for both top-up loans and new loans. However, if you delay in providing any requested additional information it may take longer.
Loan decisions are made against a criteria that considers affordability, credit history and borrowing history with Swan.
If we do need to decline a loan application we will explain why and may suggest action you can take to improve your financial situation. There is often financial assistance available for free and borrowing money is not always the best answer.
There are a number of reasons why we may reject a loan application and here are just a few:
Credit Report – To better understand your financial situation, a statutory credit report provides a one-off snapshot of your credit history. When you apply for a credit product, your credit report contains financial information lenders take into consideration when making a decision on your application. Click on the links below for more information about your FREE credit report and how to understand the information it provides us.
Not enough evidence of income – We need to see that you have enough income to pay all the bills as well as loan repayments
Outgoings too high to afford loan repayments – If we can’t see that your spending allows you to afford loan repayments then we will decline the loan application. We may also suggest that you review your expenditure and reduce your outgoings where possible. For example, weekly meal menus can help to control supermarket bills so you only buy the food you need for the week, and reduce food waste. It’s often hard to keep track of spending on takeaways and coffee shops on top of the weekly food shop.
Already in debt – if you are already borrowing elsewhere then borrowing more may cause more problems and make things worse for you. These other debts could include Buy Now Pay Later Schemes (which many people do not realise is borrowing).
Gambling – An occasional bet probably won’t do you much harm, but when it comes to gambling, how much is too much? For Swan, as a credit union, our members’ wellbeing is our first priority, and we will decline loan applications where a high level of gambling indicates unaffordability of the loan. Unaffordable gambling can be harmful to family life, relationships, employment, healthy eating and can affect your ability to borrow money. The charity Gamcare operate the Freephone HelpLine – 0808 8020 133 or online at www.gamcare.org.uk
HOW TO APPLY FOR A LOAN ON THE APP
Please watch this short video before you start, then read our tips below.
OUR TIPS TO MAKE YOUR LOAN APPLICATION AS EASY AS POSSIBLE:
- Please set aside 20-30 minutes to fill in the form
- There are six sections to complete
- You can go back to a previous section to make a change, but you’ll lose the details you added to later sections
- So it’s best to gather all the information you need before you begin
- You’ll need to give us details of your monthly income such as wages, benefits and pension.
PLEASE NOTE: we are obliged to validate your Income figures to ensure accuracy and affordability.
- We also need all your monthly expenses such as rent or mortgage, council tax, and household bills including groceries and clothes etc.
PLEASE NOTE: we are obliged to validate your Expenses figures to ensure accuracy and affordability.
If you’ve got any questions before you start, get in touch with us and we’ll be happy to help.