Loans
Cornish Community Banking could provide you with the credit you sometimes need at a fraction of the cost of some other lenders.
We offer our members two types of loans. You can apply for a loan as soon as you become a member at a Typical APR of 26.8% for loans up to £300 or, once you have been a member for 13 weeks, you can borrow up to three times the value of your shares at a Typical APR of 12.7% when your shares are pledged as security on the balance of your loan. There is no early repayment penalty and our free insurance will cover the cost of your loan in the event of your death.
Any members over 18 years can apply for a loan and we judge each loan application on its own merit.
Our main concerns are that members
- can afford the repayments
- are not over-indebted
- are honest with us about their financial situation
- provide us with complete and accurate information on their income and expenditure.
FAST TRACK LOAN 26.8% Typical APR
If you've been a member for less than 13 weeks or do not have sufficient savings, you can apply to borrow up to £300 at 26.8% Typical APR repayable within 6 - 9 months.
The table below shows a comparison of our rates with those of a leading Doorstep lender. For this example, we've used a loan of £300 for one year, repaid weekly.
|
|
CCB
|
Doorstep Lender
|
|
Loan Term
|
31 weeks
|
31 weeks
|
|
APR
|
26.8% Typ APR
(15.0% Rep APR)
|
365.1% Representative APR
|
|
Weekly repayment
|
£10.41
|
£15.00
|
|
Total Repayment
|
£322.66
|
£465
|
|
Total charge for credit
|
£22.66
|
£165
|
Members are entitled to apply for a subsequent loan after six months of consistent repayments and where there is evidence of regular saving.
If you want to apply, just phone us on the number at the top of this page and we'll send you the Loan Application form. Alternatively, you can pick one up at a branch, or download it from below.
PLAN & SAVE LOAN 12.7% TYPICAL APR
If you've been a member for at least 13 weeks, you can apply to borrow up to three times what you have in your Shares at a 12.7% Typical APR You must keep at least a third of the loan balance in your Shares over the course of the loan.
For example, if you had £300 in Shares, you could apply to borrow £900. After a while, if you’d paid off enough to bring the loan balance down to £450, you’d only need a third of that - £150 - in your Shares, and the rest would be available to withdraw.
The maximum loan we can consider is £25,000, which would require you to have £10,000 in your Shares.
Members are entitled to apply for a subsequent loan after six months of consistent repayments and where there is evidence of regular saving.
Examples of repayments at 12.7% Typical APR for a second or subsequent loan:
|
Loan amount
|
Repayment period
|
Weekly repayment
|
Total
Interest
|
Monthly
repayment
|
Total
Interest
|
Savings needed
|
|
£100
|
One year
|
2.05
|
6.21
|
8.89
|
6.62
|
£33.33
|
|
£500
|
Two years
|
5.42
|
62.88
|
23.54
|
64.87
|
£166.66
|
|
£2,000
|
Three years
|
15.29
|
383.55
|
66.43
|
391.42
|
£666.66
|
|
£5,000
|
Five years
|
25.60
|
1,654.23
|
111.23
|
1,673.17
|
£1,666.66
|