Borrow up to the value of your shares at a rate of 12.7% APR
Secure your savings against your loan and reap the benefits
If you are looking for a loan, and you have the equivalent savings amount, with Pioneer Mutual you can borrow at just 12.7% APR with the added benefit that both your savings and loans will be protected by our Life Savings and Loan Protection Cover (terms and conditions apply).
Taking out a loan with high street lenders can be a confusing experience, particularly with the number of loan providers and types of loans that are now available. Comparison of the true cost of a loan can be difficult to calculate. Obtaining a loan with your credit union makes sense, the loan will be fully explained and the crucial questions to ask when taking out any loan will be highlighted.
How do I compare the cost of loans?
Total cost is the only fail-safe way of comparing loans from different providers. This should include all repayments, set-up costs, transaction charges or redeemable charges. If the rate is variable and not fixed over the term of the loan the total cost will be affected. Remember there are no hidden costs with a Pioneer Mutual Credit Union loan but there may be with any other loan – don’t get caught out!
What about APR?
APR stands for Annual Percentage Rate and is the mathematical method of expressing repayment costs; it should reflect all the costs involved. Bank interest rates can change and alter the APR for many loan providers. Pioneer Mutual Credit Union is different; our APR is fixed for the term of your loan.
How much can I borrow?
The credit union has a policy on lending, designed to meet the needs of individual members and is based on ability to repay. For full details on lending policies, please contact our office.
Saving and borrowing with Pioneer Mutual Credit Union really does add up as it includes the additional benefit of Life Savings and Loans Protection, which can be a real financial comfort to your loved ones should you die.*
When you take out a loan with us you also get Loan Protection*. If you were to die before your Credit Union loan is repaid, this protection can help towards settling the debt, so that it isn’t passed on to your loved ones.
Of course, it won’t take away the pain but it’ll certainly help with the financial strain of bereavement. This benefit is included at no extra cost to you as part of your Credit Union loan arrangement* so just for once, peace of mind doesn’t cost the earth; it’s just another benefit of being a Credit Union member.
*Subject to terms and conditions. Cover limits vary and certain restrictions apply based on age and cover. Please ask at your Credit Union for more details about the individual limits and restrictions of Loan Protection.
Life Savings Protection
As a Credit Union member, you’re not only saving for your own future, but also for that of your family. With the added benefit of Life Savings Protection, your nest egg can also provide a legacy to help your loved ones cope financially in the event of your death. Additional peace of mind for your family is just another benefit of being a Credit Union member.
The amount of benefit payable depends on your age when you put money into the credit union. Benefits are accumulated on your shareholding at 100% of the amount saved between the ages of 18 and 64, and at 25% of the amount saved between the ages of 65-79. There is no cover on money saved under the age of 18 or over the age of 80. The maximum benefit payable is £10,000.
How our free life protection can help:
• John is under 65 when he saves £2,000, but is over 65 when he dies. We pay out up to £4000: his £2,000 savings have been doubled by life protection*
• Emily is over 64 when she saves £2,000. Upon her death we pay out up to £2,500: the original £2000 has been increased by 25%.*
Our member benefits protect and add to your savings in the event of death and may repay your loan if you die before you have paid it off.*
You join the credit union at age 50, and save £5 per month until death at age 85.
You saved £1,980, the amount saved between age 50 - 64 gained £840 cover, the amount deposited from age 65-79 gained £210 cover, we add £1,050 to your savings. Your beneficiary receives £3,030 in total.
* Subject to terms and conditions. Cover limits and certain restrictions apply based on savings balance and on age at death or age when savings were made. Individual limits and restrictions may also vary over time. Please ask at your Credit Union for more details about Life Savings Protection.
Most health conditions, disabilities and illnesses are covered, subject to an exclusion period, the exclusion on savings is 6 months from each deposit, and on loans it is 6 months from the start date of the loan. If death occurs during the first six months of membership, the protection cover would not pay out. Three causes of death are excluded: War, HIV, or Suicide.
Please note: continuous cover requires regular deposits into your credit union account.
Making a claim
Pioneer Mutual Credit Union is the policyholder and this means you do not have to fill in an application form and we handle the paperwork in the event of a claim, but we will require the full death certificate, as an abbreviated version is not accepted by the underwriter.
Pioneer Mutual Credit Union buys a group insurance policy, and members receive a benefit of membership if the Credit Union has such arrangements in place at the time of the members death.
In the event of a claim, we can pay your nominated beneficiary quickly without the need to wait for pro- bate. Credit Unions can pay up to £5000 to a nominated beneficiary in accordance with the Cooperative and Communities Benefit Act 2014, sums in excess of this should be handled in accordance with the executor’s instructions, and may require a confirmation. In certain circumstances, we may also need Doctors consent.
Life Savings Protection and Loan Protection is underwritten by Covea Life Limited.
Covea Life Limited is authorised by the Prudential Regulation Authority and regulated by Financial Conduct Authority and Prudential Regulation Authority.
In association with CUNA Mutual Group Limited. CUNA Mutual Group Limited is authorised and regulated by the Financial Conduct Authority.