Child Benefit Loans are delivered by a partnership of local credit unions who are all working together to give you a fairer and much more affordable alternative to high-cost borrowing from payday or doorstep lenders.
Credit unions are mutually owned by their members so everyone who uses its financial services has a say in how it is operated. This means you can be certain their services will be ethical and responsible. Each credit union is also regulated by the Financial Conduct Authority and the Prudential Regulation Authority giving you peace of mind.
When you take out a Child Benefit Loan you become a member of your local credit union, joining over 1.2 million people across Great Britain that benefit from access to a range of convenient saving accounts and affordable loan products.
If you have never heard of a credit union then this guide by Martin Lewis, the Money Saving Expert is a great place to start Guide to Credit Unions
Why a Child Benefit Loan?
Our Child Benefit Loans allow you to use your Child Benefit to get a much better deal if you need to borrow.
If approved, your regular Child Benefit payments will be redirected into your new credit union account – with regular loan repayments and your minimum savings automatically deducted. Any remaining funds can either be transferred back to you or you can choose to put more away in savings.
This means that when you have repaid your loan – not only will you have saved hundreds of pounds in interest compared to high-cost lenders but you will have built up a small savings pot.
Just take a look at this example of taking a £600 Child Benefit Loan from your local credit union instead of the leading home-collected credit firm. Repaid over 52 weeks, you would be over £500 better off: