By law, credit unions can charge a maximum of 1% interest per month on the money they lend to their members. This means that when you borrow from a credit union, the annual percentage rate (APR) will not be more than 12.68% loans

The loan calculator below will give you an estimate of what your loan would cost you if you were paying an interest rate of 1% a month on the reducing balance.

Simply choose the amount you would like to borrow, how often you would like to make your repayments, and how many months you would like to borrow the money for. The loan calculator will estimate what each repayment will cost you, the total amount you will repay and the total interest you will pay over the period of a credit union loan.

Please click this link to use a Credit Union calculator

Credit Union loan example – Kevin ’s flat

Kevin has been a credit union member for six months and has saved £450 by standing order at £75 per month.

He borrows £900 over 12 months as a deposit for a flat. His monthly repayment is £79.97 including interest.

He continues to save £20.03 per month as well and increases his standing order to £100. After 12 months the loan is repaid in full costing just £959.57.

Meanwhile his savings have increased to £690.36. Next time he could borrow over £2,000. Perhaps to buy himself a car, or to help with the costs of a higher education course.