Credit unions make nonprofit loans to Manchester residents

One particular option that only 2% of the population takes advantage of is a personal loan offered by credit unions. Manchester borrowers have better options than getting fleeced of their hard-earned income by high street lenders. Credit unions provide them with this nonprofit option.

While every credit union has different clientele, policies and products, they all reinvest their profits back into the business for the benefit of members. Thanks in part to the diversity of Manchester’s population and its size in general, there are several local institutions to choose from.

• Manchester Unity Credit Union restricts membership to members of the Manchester Unity Independent Order of Oddfellows. While this may initially appear to make many people ineligible, the application to join is also the same as an application to join The Oddfellows. Loans are available to members who have saved for at least six months (or three months if they have been members longer than two years). Monthly interest can be as low as 1%. Call 0161 214 4629 or apply in person at the Oddfellows House.
• The Co-operative Credit Union has a more restrictive membership policy. It does offer starter loans to new members which can allow them to prove creditworthiness necessary to be approved for larger loans in the future. Membership is mainly inclusive of employees/retirees of The Co-operative Group, though there are other approved employers where membership is a benefit. Call 0845 602 3554 to find out about eligibility requirements.
• Voyager Alliance Credit Union Ltd is open primarily to those who work in transportation industries, including bus, rail and airport transit. Loan products feature some of the lowest rates available in England. Multiplier loans allow savers to borrow four times their balance in savings at a rate ranging from 15.7% to 10.9% APR, up to a maximum of £10,000. Borrowers who lack savings can still borrow up to £10,000 but at higher interest rates through Optimum Loans. Carousel loans feature a revolving credit line that allows members to access funds for emergency financial situations. The amount that can be borrowed by customers ranges from £500 to £3,000. Call 0151 489 0402 to find out about eligibility requirements.
• Manchester Credit Union Ltd has an open membership policy that extends membership to residents and workers of Manchester, Bury, the High Peak, Rochdale, Tameside and Trafford. Interest rates are also low here, and get even lower for higher initial loan balances. Call 0161 231 5222 to enquire about becoming a member and accessing the loan products to cover life’s emergencies.
• South Manchester Credit Union Ltd also has an open membership policy. South Manchester residents or those who work in the Common Bond Area of South Manchester may join. Members have three options of up to £1,200: Starter, Saver, and Flexi loan. Smart loans are available for borrowers that need more than £1,200, such as for a rent deposit or other emergency cash needs. Even the Secured borrowing product and Welfare loans are available for residents. Call 0161 448 0200 for information on joining and criteria.

These five nonprofit lenders provide great alternatives to high street lending. Contrary to common belief, credit unions can be a source of emergency borrowing. Better yet, the rates are a fraction of what many other lenders charge. When looking for an emergency cash solution, getting a quote through a credit union could offer a huge savings over other choices.