All parents are now eligible to apply for a loan of £500, or £750 if Child Benefit payments are deposited directly into your Credit Union account. The loan is repayable over 50 weeks for parents receiving weekly Child Benefit payments, or 13 months for those receiving payments every four weeks.
Please note that two loan schemes are available to successful applicants. Further details regarding the Top-Up and Revolving Credit schemes can be found below.
Members who have successfully repaid two or more previous loans may apply for a £1,000 Child Benefit Loan, provided they hold a minimum of £100 in savings.
*42.6% APR compared to a doorstep lender at 399.7%.
Repayments and child benefit savings
Once the loan has been fully repaid, members may choose to withdraw all or part of their Child Benefit savings, continue saving, or apply for a new loan.
Please note: Any remaining funds will be transferred into a Share 1 Account. Members may request a withdrawal from their Share 1 Account or contact the Credit Union to arrange automatic payments.
The Child Benefit Loan Schemes
£250 Top Up Scheme and eligibility
Members may apply for up to three top-ups on their original loan, with three months between each top-up. After the third top-up has been granted, members will be required to repay the outstanding balance in full before becoming eligible to apply for a new loan. Please refer to the table above for eligibility.
How do I top up my loan?
Once three months have passed since your last loan, you can apply for the £250 top-up by selecting Loans and then Apply Now, or directly through our app.
Revolving Credit Scheme and eligibility
• New members will be subject to a credit check as part of the application process.
• Existing members should contact the Credit Union office to enquire about their eligibility.
• Eligible members will initially be granted a £750 credit limit.
• Members may top up their loan back to the approved credit limit once at least £100 has been repaid. There is no restriction on the number of times a top-up can be requested.
• Members are required to save regularly while repaying their loan. Please refer to the Repayments and Child Benefit Savings Table for further details.
• After six months of continuous repayments, members may apply for an increase in their credit limit to £1,000, subject to a credit check.
IMPORTANT INFORMATION
Members must choose either the Three Top-Up Scheme or the Revolving Credit Scheme. You cannot participate in both schemes at the same time.
If a member wishes to transfer from one scheme to the other, any outstanding loan balance must first be repaid in full.
For further information or guidance, please contact the Credit Union office.
How to apply
- Complete the online Child Benefit Savings And Loan Application Form. When completing the application, please select “CHB Loan” under loan purpose. This will indicate that you are applying for the Child Benefit Loan.
- After submitting your application, please email the Credit Union to confirm the amount of Child Benefit you receive and how frequently you receive it. Please also confirm which scheme you are applying for.
- Your application will be reviewed, and you will be notified of the decision by email. Please note: a credit check will be conducted as part of this process.
- If your application is approved, you will receive an email containing your loan agreement along with our bank details so that you can arrange to have your Child Benefit payments redirected to your Credit Union account.
- Once we have received both the signed loan agreement and the first Child Benefit payment, your loan will be processed and released to your nominated bank account within two working days.
Please note that payments are not visible to us on the same working day; they are recorded the following working day. - Please note the loan cannot be disbursed until the first Child Benefit payment has been received by the Credit Union.
