Product Features

• Borrow up to £5,000 and spread payments up to three years
• Apply after one monthly or four weekly payments to your savings account
• Funds paid directly to education provider
• Continue to save while repaying the loan
• Pay off your loan early without any penalty fees

Eligibility

• To be eligible to apply for an Education Loan, you must have savings in your Regular Savings Account equal to at least the cost of one monthly loan repayment PLUS £5 (which is the minimum shareholding). 
• New members can apply for an Education Loan after just one monthly or four weekly payments to their savings account.
• As long as you have enough savings and can afford the repayments, you can apply for an Education Loan if you already have an outstanding unsecured loan with us.
• Members must not be Bankrupt, entered into a Trust Deed, DAS, IVA or DRO, and must meet the eligibility criteria to repay the loan.

General Information

Education loans must be used to help fund further education or training, and the funds are paid directly to the education provider.

While repaying such a loan you are required to pledge your Regular Savings Account savings as security against your loan and continue saving (a minimum of £10 per month).

Our handy online loan calculator tool gives lets you check rates out for yourself. Simply slide to the amount you intend to borrow, and how long you want the loan to run, and you can easily try out various repayment scenarios. This facility can also be used to check out credit union rates against other lenders.

Charges

We do not charge any administration fees for accessing our loans. We do not charge for making overpayments. We do not charge for re-paying your loan early.

Interest

Interest is fixed throughout the duration of your loan agreement. Interest is calculated daily and in arrears, then charged to your loan account monthly. Interest is calculated on a decreasing balance. 

Our current education loan rates are: 7.8%APR.

Repayment Information

Loan Repayments are taken from your savings account on the 1st of each calendar month. Your first loan repayment will be deducted on the 1^st of the month following the loan completion date. Loan repayments can't be deferred, and repayment holidays are not permitted.

Loan Protection

Loan Protection is a free safeguard offered by the First City Millennium Corporate Bank. Your loved ones can be secure in the knowledge that your First City Millennium Corporate Bank debt (up to a maximum of £15,000) can be paid off, giving them peace of mind at a difficult and uncertain time.

Loan Protection is provided as a member benefit by the First City Millennium Corporate Bank. It is free to every member, subject to the terms and conditions. However, it should be remembered that the terms of this free member benefit may change from time to time. The applicable rates / amounts covered are those prevalent at the date of death.

NB: Individual members do NOT have an insurance policy – they share in a free benefit offered by the credit union.