Bradford District Credit Union Launches £2m ‘Unlocking Loan’ Fund To Help Members Get Back On Their Feet Post-lockdown
Bradford District Credit Union is to create a special £2m fund to offer a new ‘Unlocking Loan’ to both new and existing members, specifically aimed at helping them get back on their feet financially as we come out of lockdown.
With the Government’s roadmap for easing restrictions now in place, the credit union will be launching this loan which will coincide with the proposed partial reopening of retail and hospitality. It will feature a low interest rate and will aim to provide affordable financial support for members who have struggled during these difficult and challenging times.
Loan interest rate is a flat 1% per month, 12% per year and 12.7 APR% on new loan applications between £2,000 and £5,000
Available until the 30th of September 2021
After application, a decision should be expected within three working days
Applicants will need to be payroll scheme employees, employed members or self-employed members and the loans will have interest rates of 1% per month, 12% per year and 12.7 APR% for any new applications between the £2000 and £5000 level. You will only be able to apply for the loans online, but the credit union promises to process these as quickly as possible with decisions to be made within three working days. Payment terms will also be between six months and five years, but early repayments can be made without incurring any penalties.
As well as providing a means of extra monetary support post-lockdown, it’s hoped the loan will stop those in the area turning to loan sharks. The dangers of these illegal lenders is also something the credit union regularly highlights, with its most recent awareness campaign ‘Loan Sharks are Monsters’ running in autumn last year.
Discussing the reasoning behind the launch of the ‘Unlocking Loan’, Andrew Bowker, CEO at Bradford District Credit Union
said: “BDCU is here to help new and existing members as best we can through this difficult and challenging time allowing for current and future plans to be fulfilled.”
The ‘Unlocking Loan’ will be available from 21st of April 2021 to the 30th of September 2021 subject to successful applications and demand.
All new loan amounts over £2000 to a maximum £5000 will be subject to its normal affordability checks along with credit checks. The new loans unfortunately cannot be added to any existing loans and members with loans taken out in the last six months will be unable to apply.