Assistance from MCF Loans in East and West Midlands

Low interest rate personal loans are available from Midlands Community Finance (MCF) and their Start Up as well as individual borrower scheme. The credit union offers the financing in partnership with the government councils in East and West Midlands, and the funds can be used for paying bills, holiday, housing costs, or any need the customer has. Businesses can also borrow money using the MCF scheme.

The not for profit organisation is a responsible lender and is identified by the Community Development Finance Institution as a place for people to go to for affordable loans. They not only offer financing for personal uses, but businesses can also borrow up to £20,000. Individuals that can’t otherwise get money due to poor credit can apply for MCF Start Up Loans, and the credit unions is sometimes able to approve them for funds and also give them other financial support as well.

Assistance from MCF Loans

The credit union created this scheme to help financially excluded people. Often times families are turning to payday lenders for help with their bills or rental arrears. Or they turn to some other high priced lender for assistance. Midlands Community Finance provides all people, no matter their income, affordable credit. The interest rates will be much lower then mainstream banks or payday lenders.

Individual borrowers can be given as much as £3,000. They can use the money for anything they want. Funds can help them pay for their housing or rental arrears. Or it may go towards help with with a car payment, holiday, or educational expense. There are no restrictions on what can be paid, as long as the borrower keeps up with the repayment terms.

Both the East and West Midlands Council fully support the two loan schemes. The government will always link people to the credit union if they need money and there are no other resources available. The funds can not only help them keep up with any emergency bills they have, but there are many other services available from MCF. The credit union will also provide the following support.

-Free advice on whatever issue the consumer has.
-MCF also offers other loan products to people with a stronger credit history, including car loans, mortgages, and other financing.
-Counselling is arranged around debt relief, consolidation, savings and more.
-Customers can also open a savings or checking account at the credit union.
-Customers are given support on high priced lenders, including help in finding alternatives to payday loans.

Advantages of Midlands Community Finance services

There are many advantages to using MCF Loans. Of course the main one is the low interest rates that will be given to the borrower. While each application is assessed on an individual basis, the APR will generally be less than 10%. This is much lower than credit cards, payday lenders, and other high priced banks.

Applicants that are deep in debt will not be approved. Midlands Community Finance will not approve an application for a loan if the individual will have trouble repaying it. If borrowing more money leads to more debt, this will not benefit the credit union or borrower.

Since the government approves this responsible lender, MCF also has information on safety net schemes. As an example, if the applicant is not approved for funds from the credit union, they will refer them back to the council customer support team. At that point they can get help in applying for government schemes, whether it is a grant for paying their bills from welfare, a free food parcel, or other support. Midlands Community Finance also works closely with East Midland Citizens Advice on other schemes.

Another benefit is a potential “payment holiday”. This is when MCF may provide the borrower a month or two in which the monthly repayment can be delayed. It will in effect free up the individual’s cash for other critical bills they have. Note a payment holiday needs to be negotiated with the credit union in advance, otherwise the borrower could go into default.

To learn more on how to borrow from the credit union, the main office for MCF Loans is at 227 Normanton Road, Derby DE23 6RH. Or ring customer support at 0845 388 3998.