Cherwell district low interest loan scheme

A scheme for low interest rate loans is available in the Corby Borough and Cherwell district that involves the council partnering with Northamptonshire Credit Union to provide cash to households local to the district. A personal loan of up to £10,000 can be paid out to the borrower which they can use for paying bills and living expenses.

The programme is different than other options that may be available to Corby families. The local authorities and credit union will determine whether to issue a personal loan based on the applicant’s ability to repay the money. It will not take into consideration their credit history. This means that many other families in the borough, even those with poor credit, may be able to borrow the money they need for their bills or household costs at an affordable interest rate.

Once approved for funds from the government backed scheme, the cash can be used to pay any type of bills or need that a resident has. Some Corby residents use the money for their rent while others pay for car payments or energy bills. Other uses of the loan may be for university costs, school uniforms or more job training type programmes. There are no restrictions on the money, as long as the borrower continues to make payments as per the terms of the loan.

Most people that borrow money from the loan scheme will also be enrolled into the Northamptonshire Credit Union. This will provide them access to the other services provided by NCU, and there are more options available than from a bank. As an example, the Cherwell district family may be able to open a savings account or attend budgeting classes. They can also learn about debt reduction schemes that specialists from the Union may be able to assist with.

The terms of the personal loans are favorable as well. There are no hidden fees to apply or set up the account. All of the loans are have a fixed interest rate, so the APR will not change over time or if the borrower’s situation changes. This allows the household the ability to plan much more effectively for how they can budget their living expenses and income.

As noted, families local to the Cherwell district can borrow up to £10,000. The maximum will depend on their income though. So if it does not support the repayment of that, then the credit union will provide less money. But if if they do not receive the total of £10,000, the person can always reapply later if or when their household income increases.

Unlike most other lenders, such as payday loan companies, the Corby Borough scheme only looks at the ability to repay the money. They will not discriminate based on age, race, religion, or credit history. This means that residents have a great alternative to access low cost funds for their bills.

For more information, people can call 01536 464022, stop by the One Stop Shop or council office. Support specialists can provide applications and information.