Torfaen & Monmouthshire access cheaper loans by Gateway Credit Union

One government supported financial institution is making it easier for those living within Torfaen to get access to cheaper loan products. Gateway Credit Union is bringing down the cost of borrowing money by providing an alternative to traditional sources.

Thanks to £1.25M in funding from the Welsh Government on top of previous support, the nonprofit institution is able to extend loans to a much broader range of applicants. It means that many people who were shut out of the traditional banking system now have potential access to new products that could charge them less at the same time.

Previous credit challenges are allowed

One way that Gateway Credit Union expands access is by considering more than just a credit rating. Applicants who have had challenges in repaying older debts in the past may still be considered for new requests.

Staff encourages the inclusion of explanations of any causes or mitigating factors along with each application for funding, so that they may fully understand the situation surrounding a prior delinquency or default. It helps them to make a fully informed decision.

An example of the flexibility offered in their review process is the inclusion of any change in circumstances. If a default occurred due to job loss, yet the applicant has since gained employment and maintained the job, then they might have a good chance for approval.

Interest rates depend on amount borrowed

Most lenders choose to charge higher rates to applicants that have damaged credit or reduced income. This type of risk-based pricing does not occur at Gateway.

Instead the amount charged as an interest rate depends solely on the amount borrowed. Larger amounts may see rates below 10 percent. Smaller requests would expect a higher rate.

There are no other charges outside of the interest. There are no early settlement fees. No application or arrangement fee is charged either.

To further accommodate the needs of residents, the firm has decided to include life insurance on each product at no charge. This means that an outstanding balance may be dismissed upon death. It is generally available to all borrowers under age 70.

Who can apply?

Any resident of Torfaen or Monmouthshire may seek membership with Gateway Credit Union. Those who live outside may still gain access if they work within these areas.

Security is not required. Applicants may find that rates may be lower if there are savings that may be pledged to collateralize the debt.

Questions about each product may be directed to the loans team. Members are encouraged to openly communicate concerns or needs. Payment plans could even be altered if a member is having difficulty maintaining this schedule due to a temporary financial emergency.

Branch offices

Member support and aid from the Welsh Government have allowed for expansion to multiple branch offices to serve a greater population.

Torfaen residents may access their closest location for assistance:

• Cwmbran:
  • Llanyrafon Church—Call 01633 870695.
  • Threepenny Bit Community Centre—Call 01633 869227.
  • Thornhill Community Centre.
  • Torfaen County Borough Council Customer Care Centre at Rees Square.
• Pontypool:
  • Headquarters on 21 Commercial Street—Call 01495 742500.
  • TRAC 2 Social Action Centre on 2 Church Avenue—Call 01495 764078.

Monmouthshire also has benefitted from expansion into the local communities:

• Abergavenny—Call 01873 858938.
• Caldicot—Call 07905 411336.
• Chepstow—Call 01291 409582.
• Wyesham—Limited hours are available at Old Woodland Stores on 82 Woodland View.

Enquiries are best made by contacting the closest branch office directly. Decisions on new applications are based on the full situation, including income and credit history. Calculations on what type of payments a family can afford are often included as part of the approval basis.

Residents in these communities benefit from having increased access to loan products beyond what is offered by banks or high street lenders. Rates tend to be cheaper also, with the savings of members being used to fund new requests.