Affordable local loans with fair repayments, personal service and support you can trust.
The MDCU Credit Union offer a range of services to our members
The Credit Union will consider loan applications from members for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits. It is credit union policy to meet the borrowing requirements of as many members as possible, depending on the available funds.
Applications for loans are made on a standard loan application form. Loans can be applied for by calling to our office. Our volunteers will give you any assistance required. Loans will then be considered by going to the Credit Committee meeting held on a Wednesday evening.
In deciding whether or not to grant the loan, the credit committee will take into account the member’s record of savings and loan repayments, as well as the ability to repay. Loans over the value of £2,000 will require proof of income and be subject to a credit check with one of the credit reference agencies. Once the loan is granted, the member will be asked to complete a loan agreement, which is a legally binding document, a promise to repay the loan and to commit to regular repayments. Our current loan policy is available to download.
Remember – only members are eligible to receive loans from your credit union.
Credit unions are flexible with regard to repayment plans, though there are some legal limitations to length and amount of loans. The member will be advised on the best repayment plan to meet their own circumstances. Members are generally advised to repay a loan in as short a time as possible. 5 years is currently the maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the credit union, which will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan will be renegotiated if possible.
There maybe some early settlement fee associated with clearing your loan quicker than agreed.
Please note that you need to be an MDCU member in order to apply for a loan with us
By law credit unions cannot charge any more than 1% per month on the reducing balance of a loan. This represents an interest rate of 12.68% APR (Annual Percentage Rate). Credit unions do not charge fees or transaction charges. Since the interest is charged only on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned.
When you borrow from Motherwell & District Credit Union, you are choosing a lender that puts people before profit.
Unlike many banks and high street lenders, a credit union exists to support its members and the local community, offering a more personal and understanding approach to borrowing.
One of the main benefits of a credit union loan is fairness. Loans are offered with clear terms, no hidden charges and affordable repayments designed around real circumstances. Because interest is charged on the reducing balance, you only pay interest on what you still owe, which can make borrowing more cost-effective over time.
There is also real value in dealing with a local organisation that understands the people it serves. At Motherwell & District Credit Union, loan applications are considered individually and in confidence, with a genuine focus on helping as many members as possible borrow responsibly. If circumstances change and repayments become difficult, members are encouraged to speak to the credit union early so that support can be offered wherever possible.
Borrowing from a local credit union also keeps money working within the local area. As a member-owned organisation, the credit union helps people in Motherwell and surrounding communities access responsible finance while supporting a service that benefits local families and households.