SHARE WITHDRAWALS DURING LOAN

When you take out a credit union loan, you need to keep your savings in the credit union. The credit union is here to help you build up savings as well as provide fair loans.
However, after you have paid part of your loan, you might be able to withdraw a small amount of savings during the loan if you need to.
Check with the office if you would like to take out some of your savings. It depends what kind of loan you take as to how much you have to keep in.
If you fall behind with your loan repayments at any point in your loan, you will not be able to take out any savings. This is because your savings are the only security the Credit Union takes – we are here to help you, but we must also safeguard the credit union.

Each time you take out a loan, the office will tell you which of these rules applies to you.

Fully secured loans
You must always keep the same amount in your savings account as you still owe.
Example: Save £300 and borrow £300 as a fully secured loan. When the amount of loan that remains is less than £300, you can withdraw some of your savings, but always keep in the amount that you still owe.
i.e. You make repayments until you owe £200, you can withdraw up to £100

Partly Secured Loans
You borrow 3 times your savings. You keep ⅓ of your outstanding loan in your savings account.
Example: Save £300 and borrow £900. You make repayments until you owe £600.
You can withdraw some savings as long as ⅓ of the amount owed is left in your account
However if you have fallen behind with your repayments you will not be able to withdraw any savings.


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ISCU
63 Austin St
Ipswich
IP2 8DF

Authorised and Regulated by the Financial Services Authority No 213756