Tuesday, 26 June 2018

Interest Rates For Loans | June 2018

Interest Rates for loans will be increasing on 01.06.18 for new loans. See details below.

The Directors of your credit union have recently conducted a review of its operations with a view to ensuring its future financial viability. As a result of this review the monthly interest rate on loans of £1000 or less will be increased to 2% with effect from June 1st 2018. This will only affect loans agreed on or after that date the interest rate on existing loans will be unchanged. The interest rate on loans of more than £1000 will remain at its current level.

The reasons for this decision are as follows. Your credit union has to cover its costs from the interest income on its loans. The cost to your credit union of making and administering a loan is the same whatever the size of the loan. On small loans the interest income that your credit union currently gets is less than the cost of the loan to the credit union. At the current monthly interest rate your credit union is making a loss on every loan of £1000 or less that it makes. Given the number of such loans, this is a considerable drain on your credit union’s resources. Raising the monthly interest rate to 2% will greatly reduce, though not entirely eliminate, the losses on small loans.

Doubling the monthly interest rate does NOT mean doubling the monthly repayments. The increases in monthly repayments will be relatively small. The table here shows what the monthly repayments will be at the new interest rate on loans of £1000 or less on larger loans the monthly repayments will be unchanged. The new monthly rate of 2% is equivalent to an APR of 26.82%.

Initial Loan
Months for Repayment
Monthly Payment

The Directors of your credit union consider that members taking out small loans with it after 1st June 2018 will still be getting a loan at a very competitive rate. Banks generally do not make loans of £1000 or less. Commercial money lenders charge much higher interest rates. Using a credit card to get cash typically involves a fee of 3% of the loan (£30 on £1000) and interest is typically charged at an APR of 28%.

If you have any comments or questions please contact your local office.

Saturday, 5 May 2018

Interest Rate Changes | 2% increase

From 1 June 2018, interest rate changes on loans of under £1,001 will be 2% (24% per year).  This is a very small increase in the actual repayment figure. Want to know more? Ask in your local Credit Union office.

We have a 1-page pdf that provides you with all the information that you will need - including how much your new payment will be under the new interest rate.  To visit our website and download the document, click here

Data Protection Legislation Changes | IMPORTANT

General Data Protection Regulations

The law on data protection is changing on 25 May 2018

Have you told us how we can keep in touch with you?

Have you updated your details with us?

Contact your local office straight away.

Tuesday, 20 March 2018


Please note that both offices are closed on Easter Saturday, 31 March 2018.

Monday, 5 March 2018

Saturday, 27 January 2018

AGM | 2018

Bute And Cowal Credit Union AGM

Wednesday 3 February 2018

2pm St Pauls Church, Rothesay

All members cordially invited to attend

Tuesday, 5 December 2017

Last Date To Apply For A Loan!

Don't miss out, last date for applying for a loan is December 16th.

Why not shop early for Christmas - 2018-  and join the Credit Union and start saving?

Festive Opening changes - the offices will be closed from Wednesday 20th December and reopen on Saturday 6th January 2018

Happy Christmas to all our members past, present and future!