At HertSavers, we consider loan applications from members for any worthwhile purpose. But if you are having trouble making your monthly payments please see our Debt Advice at the bottom of this page.
Each application is treated in the utmost confidence and will be considered on its merits.
Applications for loans are made on a standard Loan Application Form, acopy of which can be downloaded from our Contact Us page. Alternatively you can complete the Online Loan Application Form. Any member over the age of 18 can apply for a loan.
You will need to supply supporting documents that are relevant to you. This may include payslips, benefit award letters, bank or credit card statements etc. But please speak to us first before sending original documents through the post.
The sooner you get the paperwork to us, the sooner we can start to process it.
Our staff will give you any assistance required. Decisions on loans applications will be made by the Credit Committee which usually meets most Saturday mornings.
If we need more information from you we may call you or ask you to come to a loan interview. If you propose to redeem a loan from another lender please discuss this with us. What you need when applying for a loan
In considering a loan application, the credit committee will take into account your record of savings and loan repayments with us, as well as your overall financial situation including your ability to repay.
We also carry out a credit check with a credit reference agency and may make other enquiries.
Once the loan is granted you will be asked to complete a Loan Agreement, which is a legally binding document being a promise to repay the loan, and to commit to regular repayments.
Remember - only members are eligible to be considered for loans. Planning and managing repayments
We try to be flexible with regard to the amount and length of loan repayments. You will be advised on the best repayment plan to meet your circumstances. Members are generally advised to repay a loan in as short a time as possible. The maximum loan term is five years.
Should you experience difficulties in meeting repayment commitments, you should immediately explain the situation to us. We will treat the matter sympathetically and in total confidence. Depending on circumstances, it may be possible to change the level of loan repayments by changing the length of the loan.
There are no penalties associated with clearing your loan quicker than agreed. Interest on our loans
The most we may charge is 2% per month on the reducing balance of a loan. This represents an interest rate of 26.8% APR (Annual Percentage Rate). HertSavers does not charge fees or transaction charges and 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.
Types of Loans Available Note: details in examples below are for guidance only. Actual repayments may be higher than the figures shown.
SaverLoans
7.9% pa or 12.7% pa (12.7% APR representative)
These loans are available to members who have saved with us for at least 3 months and are the most often granted to other members.
Your loan can be up to FIVE times the balance of your Saver Account but is limited to THREE times for your first loan.
Within certain limits, you can choose the level of repayments that is right for you and we will adjust the term of the loan accordingly. For these loans, the amount you can borrow depends on the level of your savings. The more you save the more you can borrow (up to a maximum of £7,500 above your savings).
However, we recognize that for some members it is not always possible to save and borrow at the same time in which case our Standard and Instant Saver Loans may be more suitable.
The interest rate is 1% per month on the declining balance which is 12.7% APR, whatever the size of the loan. When you take out the loan, if it is fully covered by your savings and you agree to leave these savings with us while the loan is repaid then the interest rate is reduced to 7.9% pa.
Regular Repayments for a SaverLoan (based on 12.7% Representative Rate)
| Loan Amount |
Period in months |
Interest charged |
Total Amount to Repay |
Rounded Monthly Payment |
|
£100 |
12 |
£6.54 |
£106.54 |
£7.00 |
|
23 |
£12.13 |
£112.13 |
£5.00 |
|
£200 |
12 |
£13.08 |
£213.08 |
£18.00 |
|
23 |
£24.27 |
£224.27 |
£10.00 |
|
£300 |
12 |
£19.62 |
£319.62 |
£27.00 |
|
25 |
£39.32 |
£339.32 |
£14.00 |
| £500 |
12 |
£32.70 |
£532.70 |
£45.00 |
|
24 |
£63.50 |
£563.50 |
£24.00 |
| £1,000 |
12 |
£66.08 |
£1,066.08 |
£89.00 |
|
25 |
£130.00 |
£1,130.00 |
£47.00 |
| £1,500 |
12 |
£98.78 |
£1,598.78 |
£134.00 |
|
25 |
£196.62 |
£1,696.62 |
£70.00 |
Instant Saver Loans 26.8% pa
These are for members who have just started to save with us and who need a small loan to escape from more expensive forms of credit such as store cards, doorstep loans, payday loans and pawnbrokers. Within certain limits, you can choose the level of repayments that is right for you and we will adjust the term of the loan accordingly.
Limited funds are available for Instant Saver Loans and the maximum you can borrow is £500.
The interest rate is 2% per month on the declining balance which is 26.8%APR (Representative Rate).
Monthly Repayments for an Instant SaverLoan
| Loan Amount |
Repaid |
Loan Length |
Interest charged |
Total Amount to Repay |
Rounded regular Payment |
|
£300 |
Weekly |
48 weeks |
£35.05 |
£335.05 |
£7.00 |
|
|
93 weeks |
£69.08 |
£369.08 |
£4.00 |
|
£500 |
|
52 weeks |
£62.47 |
£562.47 |
£11.00 |
|
|
106 weeks |
£132.62 |
£632.62 |
£6.00 |
|
£300 |
Monthly |
12 months |
£39.52 |
£339.52 |
£29.00 |
|
|
24 months |
£79.78 |
£379.78 |
£16.00 |
| £500 |
|
12 months |
£66.34 |
£566.34 |
£48.00 |
|
|
24 months |
£134.42 |
£634.42 |
£27.00 |
Standard Loans
7.9% pa, 14.9% pa or 26.8% pa (14.9% APR representative)
These loans are available to members who have yet to build up enough savings and are looking for a larger loan than would otherwise be available. Loans can be up to £7,500 above your savings provided you are able to show your ability to repay the loan.
Within certain limits, you can choose the level of repayments that is right for you and we will adjust the term of the loan accordingly. You can avoid more expensive forms of credit such as credit cards, overdrafts and store cards.
The rate of interest you will be charged will depend on the information you provide on your application form, and any credit check or credit scoring we may do. The rate will be 7.9%, 14.9% or 26.8% pa.
Monthly Repayments for a Standard Loan (based on a rate of 14.9% pa)
| Loan Amount |
Period in months |
Interest charged |
Total Amount to Repay |
Rounded Monthly Payment |
|
£500 |
12 |
£38.67 |
£538.67 |
£45.00 |
|
23 |
£76.05 |
£576.05 |
£24.00 |
|
£1,000 |
12 |
£78.07 |
£1,078.07 |
£89.00 |
|
24 |
£152.10 |
£1,152.10 |
£48.00 |
|
£1,500 |
12 |
£98.78 |
£1,598.78 |
£134.00 |
|
25 |
£196.62 |
£1,696.62 |
£70.00 |
| £2,000 |
12 |
£154.31 |
£2,154.31 |
£180.00 |
|
24 |
£304.19 |
£2,304.19 |
£96.00 |
| £3,000 |
12 |
£231.46 |
£3,231.46 |
£270.00 |
|
24 |
£452.78 |
£3,452.78 |
£145.00 |
| £5,000 |
12 |
£452.78 |
£5,452.78 |
£450.00 |
|
25 |
£760.48 |
£5,760.48 |
£240.00 |
Apply For A Loan
To apply for a loan you can use our Online Loan Application Form (see drop down box on Need a Loan Page) or you can Download and Print a Loan Application form from the Downloads available on our Contact Us page. Or call and we can send you a form.
A debt help guide from the Consumer Credit Counselling Service (CCCS)
Are you having trouble making your monthly payments? You are not alone; millions of people are worried about debt problems.
Financial problems can be serious. Admitting you have a problem is the first and most important step and the next step is doing something about it. Start by getting some free advice from a debt help charity like the Consumer Credit Counselling Service (CCCS).
Make sure you go to a debt help charity for advice. Profit-making companies will charge a fee for their service, and this is a fee that you cannot afford.
ABOUT YOUR FINANCES
Debt problems can often be solved by learning new ways to manage your money.
- Better Rates, Better Deals
Do some research on your utilities, insurance, telephone and other service providers. Often, you can find the same deal or better at a better price. Read the small print before committing.
- Budget and Economy
A budget can help you keep better track of the money you have coming in and going out. Look at how much you have coming in as well as your total expenses. Take a look at your budget and try to reduce your expenses as much as possible by eliminating some unnecessary spending. Stick to your budget to make sure everything gets paid accordingly. Using cash, rather than cards to pay can also help you keep a check on your spending.
- More Income
Consider finding an extra job or working overtime to bring in some extra money. Take in a lodger if you own your own property. Make sure you are claiming all your benefits entitlements and tax credits.
RESOLVING MORE SERIOUS FINANCIAL PROBLEMS
If you are having trouble paying your necessary living expenses, more serious action needs to be taken. You may need to consider a debt management plan, a debt relief order, an individual voluntary arrangement, or even bankruptcy. You should seek experienced, professional help before determining which of these is best for you.
In the first instance, do not:
• use your home as collateral for any of your debts
• raise your overdraft limit• use a consolidation loan for your debts
• use your credit cards
Bankruptcy
This may be an option if your unsecured debt is greater than your properties, vehicles, and other assets combined, and you are not able to pay off your creditors in a reasonable amount of time. Your debts are completely written off, but you will be subject to financial and business restrictions and face the possibility of relinquishing your assets. You should seek professional counselling if you are considering bankruptcy.
Individual Voluntary Arrangement (IVA)
You may qualify for an individual voluntary arrangement if you have more than £15,000 in unsecured debt. An insolvency practitioner must put forth a proposal to each of your creditors, which states that your available income each month will go to pay off your debts over a five-year period. Sometimes you will also have to pay a lump sum. After that time, any debt still remaining will be written off.
Debt Relief Order (DRO)
If your assets are less than £300, you do not own your home, have no more than £15,000 in debt, and don't have more than £50 remaining after paying your living expenses, then you may qualify for a debt relief order. With a DRO, all of your debts are frozen for 12 months. If your situation is still the same after 12 months, your creditors will write off your debts.
Debt Management Plan (DMP)
With a debt management plan, an arrangement for lower monthly payments is made through a third party like CCCS. You pay one amount to the third party, and the third party distributes your payments to each of your creditors according to the agreement. Be careful - there are many profit-making debt management companies on the market who will charge you for arranging a DMP through them. Make sure you get a free DMP by going through a debt help charity, like CCCS.
WHERE TO FIND HELP
If you need help and advice about your debt problem, make sure you go to a debt help charity - that way you can be sure that any help you are given is free.
The Consumer Credit Counselling Service provides free debt help and advice, no matter how big or small your debt problem is.
Visit www.cccs.co.uk for more free debt advice, or try CCCS Debt Remedy (https://debtremedy.cccs.co.uk/start.aspx) - an anonymous, online debt counselling service, which will give you advice tailored to your situation and a personal budget. | 
21 May 2013
