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While desperate residents continue to flock to oppressive payday loans, some Edinburgh households have discovered the cheap lending options that the local credit unions provide. With rates at a mere fraction of their controversial for-profit counterparts, credit union loans can actually be a feasible choice for a family struggling to get through a temporary financial concern.

Borrowing money to cover bills for a chronic money shortage is a bad idea, since there will be no chance for repayment. The charities that collaborate with Edinburgh Council can help with permanent situations. Temporary budget shortfalls can be bridged with personal loans that an applicant could easily repay over a period of 12 to 36 months. These nonprofit credit unions offer loans to local residents that become members.

• Capital Credit Union is a social enterprise institution, meaning it approves membership requests to all Edinburgh residents as well as those who work here. To further help people in crisis, there is no waiting period for a loan application to new members. In fact, a credit union representative can submit your application at the same time that you join, so this speeds up the process. A loan as low as £250 can be requested, with upper limits as high as £20,000. Member rates drop considerably for amounts higher than £1,000, so it helps to consider total needs prior to applying. Capital Swift Loans and Loyalty Advance Loans are also available for urgent needs. Members who anticipate needing to borrow money in the near future may obtain a Flexiloan which serves as a line of credit that can be tapped in times of need. Enquiries about membership and borrowing from the not-for-profit may be directed to Capital Credit Union at 0131 225 9901. Prospective members may also visit the branch in Edinburgh at 62 Hamilton Place.
• Residents in the neighbourhoods of Gilmerton, Greater Craigmillar and Southouse may take advantage of service through Castle Credit Union. Located on the first floor of Hays Community Business Centre, this nonprofit financial institution provides banking services locally. Enquiries on membership and loans may be directed to 01312 589738.
• North Edinburgh Credit Union maintains a local branch on Wardieburn Drive, just a stone’s throw from Granton Harbour. An open membership policy applies to residents in Granton and Trinity, Muirhouse and Pilton, and in Drylan. Members are assisted with maintaining a positive savings history which could be used to facilitate loans in the future. Representatives can answer enquiries at 01314 665006.

Credit union membership in Edinburgh is higher than the UK average of two per cent of the population. It is a reflection of the positive experiences that current members are sharing with friends and family who then turn to these favourable institutions whenever a loan need arises.

Each institution has different criteria on the levels of service offered to each member. It can be helpful to compare the products and services of multiple providers to help ensure that the best fit is found for each household. By offering low-cost products to local residents, these nonprofit organisations are a great alternative to high street lenders.