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Lewisham Credit Union (Lewisham Plus) provides three primary loan options to residents of Bromley and Lewisham. Any local residents who are considering whether to borrow money for personal needs should remember to check with a credit union as one option, and Lewisham Plus is one such option.

There are three primary loan products offered that can be used to cover a family with a budget shortfall or for planned borrowing.

SAYB loan

The Save as You Borrow (SAYB) loan provides up to £1,000 when a member needs help. Whereas most banks require good credit and solid income, Lewisham Plus actually designed the SAYB service around people with damaged credit and low-earning households, so it is more accessible to borrowers. Indeed this is the most popular loan product offered by the credit union.

Finance charges of 42.6% APR are higher than some other products, but they match the higher default risk presented by many borrowers who struggle to keep up with living costs. Even at this higher rate this is still a much better choice than what is offered through high street lenders.

Flexi loan

The Flexi loan is essentially a line of credit. The funds can be re-borrowed after topping off the account. There is no requirement to secure the loan with savings like some other credit unions require.

Interest is still at the 42.6% APR level, making it a sizable cost for longer-term use. Shorter term usage is generally affordable, and with a maximum limit of £600, it actually serves as an affordable payday loan alternative. Someone who borrows £600 would repay just £12 per week or £48 per month.

Personal loan

The cheapest option is the personal loan, which also has a much higher borrowing limit. Those with sufficient income and excellent credit may borrow up to £10k. Some loans may have a collateral requirement, especially if a lengthy savings history is absent.

An interest rate of up to 26.8% APR is the upper end that may be charged. Some borrowers qualify for rates as low as 9.4% APR. Of course, all rates must be verified with the credit union as they are subject to change.

Any resident in Bromley or Lewisham is encouraged to enquire about products directly with representatives. In-person consultations allow for potential borrowers to discuss their needs and to be matched to the most appropriate product to meet their needs.

To get started, borrowers may contact Lewisham Plus Credit Union Limited at 0208 778 4738 (Main office in Sydenham) or branch offices in New Cross, Catford and Deptford Neighbourhood Offices. The lender operates as Bromley Plus Credit Union in St. Paul’s Cray.