Islay and Jura Credit Union

 

Frequently Asked Questions about the Credit Union

I already belong to a Credit Union; can I join another one?
There are four types of "Common Bond" which a Credit Union may use to define its membership.  These are Employment (where all members work for the same company), Association (where, for example, all members are firemen), Live or Work (where members live or work in a given area) and Residential (where members live in a given area.)  You can join more than one Credit Union, provided they are of different types.  Islay & Jura Credit Union has a Live or Work Common Bond.  To top of page
How do I volunteer to help at a Collection Point?
Ask at the Collection Point, or contact us for more information.  To top of page
I can't help at a Collection Point; can I get involved in another way?
New volunteers are always welcome and there is bound to be a task suited to your skills.   Contact us to find out more.  To top of page
Is there a limit to how much I can save?
The maximum amount permitted is £5,000.  To top of page
Is the Credit Union insured against fraud or robbery?
Yes.  It is a legal requirement that all Credit Unions must have insurance in place, to cover members in the event of dishonesty or robbery.  To top of page
What happens to my savings if I die?
On your membership application form, you nominate the person you would like to receive your shares in the event of your death.  Any shares paid in before you reached the age of sixty-five are repaid with an additional 100% life insurance; shares paid in between the ages of sixty-five and seventy-nine are repaid with an additional 25% life insurance; shares paid in from the age of eighty onwards are repaid, but do not attract a life insurance bonus.  To top of page
Can I add to my savings while I am repaying a loan?
Yes.  You are encouraged to do so if you can afford it.  To top of page
I need money urgently.  How long does it take to get a loan?
We normally process loan applications in a week.  However, in exceptional circumstances we will do our best to process your application as swiftly as possible.  To top of page
Why should I take out a loan rather than withdraw my savings?
Your savings provide you with benefits, such as life insurance and a possible dividend payment at the end of the year.  The amount of each of these is dependent on the amount of shares (savings) you have, so it is in your interest to maintain your savings at as high a level as possible.  Also, if you withdraw your savings, you may leave yourself with nothing to fall back on in an emergency; if you have a loan, your savings are still there.   To top of page
I use a catalogue to spread my payments; how would a loan help?
Catalogue companies often charge higher prices than others for the same goods, to cover the costs involved in receiving payment by instalments.  With a loan to cover the full amount, you can shop around for a better price and save money.  In addition, the interest rate on a Credit Union loan is lower than most catalogues, so you can save twice!  See our “Go Shopping” page for more information.   To top of page
Must I pay off my loan in full before I can borrow again?
You will normally have to repay your first loan in full.  After that, you may apply for another loan while you still have an outstanding amount on an existing loan.  If you have repaid at least 75% of the existing loan, you may apply for an unsecured loan; if you have repaid less than 75% of the original loan, you will only be considered for a secured loan (i.e. up to the total of your shares).  When a loan has been extended in this manner, it must be repaid in full before another unsecured loan can be granted.  To top of page
Is there a limit to how often I can take out a loan?
No.  If you keep to your agreements and maintain a good repayment record, there is no limit.  To top of page
What happens if I die before I finish repaying my loan?
For members who have not yet reached their 80th birthday.  If you die from a pre-existing health condition within the first six months of a loan, the outstanding amount will be deducted from your share balance (savings).  After six months, provided the health declaration form was completed correctly, the loan will be covered by our insurance and any outstanding amount will be paid in full on your behalf.  If there is no pre-existing health problem, the loan will be fully covered by our insurance.
For members aged 80 and over.  Unfortunately, we are unable to insure loans for members once they reach their 80th birthday.  Any outstanding amount will be deducted from your share balance (savings).  To top of page
I'm not working.  Can I still take out a loan?
Yes.  Anyone applying for an unsecured loan (in other words, a greater amount than your total savings) is asked to provide a brief summary of income and expenditure on their application form.  This is just to confirm you will be able to meet the repayment rate you have agreed to.  A Credit Union loan is ideal for someone on a low income, as it allows you to set the repayments at a level to suit you.  To top of page
Am I too old to take out a loan?
Certainly not!  The Credit Union values all its members equally.  However, we are unable to insure loans for members after they reach their 80th birthday and regret we can therefore only offer secured loans to these members.  To top of page