Holiday Loan

Secured Loan

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 Loan Protection Cover (terms and conditions apply).

  • Borrow between £50-£32,000 with a fixed interest rate (12.7%)
  • Flexible amounts and repayment periods
  • Interest charged only on the reducing balance (not on the total amount borrowed)
  • No set-up fees or early repayment charges
  • Save while you are repaying the loan
  • Borrow up to £15,000 above your savings

Which loan?

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.*

Loan Protection

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.*

Example:

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.

Further Information

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.

  1. Loans can be made to members over the age of 18 years of age.
  2. The maximum interest rate charged on loans shall be no higher than 1% per month on a declining balance. This amount may be varied in the event of a change of legislation and members will be kept informed of any such change.
  3. The Lender will lend and the Borrower acknowledges that they have received, the sum borrowed under the loan agreement. The Borrower will repay the Loan (i.e. the Total Amount Owing) by the repayments set out in the loan agreement.
  4. Interest will be charged monthly on the unpaid balance of the Loan and any unpaid interest at the rate set out in the Loan Agreement.
  5. The Borrower has the right to settle the Agreement early at any time by paying in full the balance of the Loan and any unpaid interest outstanding. The Lender will, on request, provide the Borrower with a written statement of the sums which have been paid and which remain outstanding under the agreement.
  6. The Borrower acknowledges that the details given on the Loan Application for this agreement are correct and will inform the Lender immediately of any change in financial circumstances which may reduce their ability to repay the Loan or of any change in their address.
  7. If the Borrower fails to pay any amount due to the Lender under this agreement, or breaches any of its terms, the Lender has the right to demand early repayment of all or part of the balance of the Loan outstanding, together with any unpaid interest. The Lender will give the Borrower written notice not less than seven days before taking any action to recover any such sum. The Borrower acknowledges that, if any loan agreements are not paid, or are not paid after the agreed time, this may result in the Total Amount Payable under the Agreement being greater than the sum set out in the Loan details.
  8. The Borrower will be liable for any costs the Lender incurs in recovering sums due under the Agreement.
  9. Loan interest is calculated on a daily basis, paying later or earlier will mean a higher or lower sum of interest charged. Paying higher than repayment detailed in the Loan Agreement will reduce the total amount of interest charged on a pro-rata basis.
  10. I hereby consent to registration of these present and of any such Certificate as aforesaid for preservation and for execution.
  11. I agree that if I default on repayments, information about my loan may be passed on to the Department for Work and Pensions for their consideration of deductions from the benefits that I am or will become entitled to.
  12. Any Guarantor under this agreement will be liable for sums due under it which the Borrower fails to pay.
  13. You agree that you will inform Pioneer Mutual Credit Union immediately if you give or receive notice of termination of employment, change of address or any other circumstance which will affect my ability to make the agreed loan repayments, so that alternative methods of payment may be arranged.
  14. The borrower agrees to comply with the terms of the loan agreement and will let Pioneer Mutual know if you will be absent on holiday or other planned absence so that loan repayments can be made in advance, or agreed to be deferred until your return, with a consequent effect on the overall amount of interest paid.
  15. All loans are subject to approval and availability of funds.
  16. Your personal details will only be used in accordance with the Data Protection Act 1998.
  17. Your personal details will only be shared with licensed credit reference agencies and for debt recovery purposes, should this be necessary.
  18. We have loan protection cover that covers your loan in case of death. Subject to terms and conditions, restrictions apply based on age and cover limits.
  19. We may make searches about you at credit reference agencies who will supply us with credit information as well as information from the Electoral Register. The agencies will record details of any search whether or not this application proceeds. We may use credit scoring methods to assist the application and to verify your identity. Credit searches and other information which is provided to us and/or the credit reference agencies about you and anyone with whom you are linked financially or other members of your household may also be used for debt tracing and the prevention of money laundering as well as the management of your account. In addition, we may ask you to provide physical forms of identification and/or we may telephone you to confirm your identity.
  20. To prevent or detect fraud or to assist in verifying your identity, we will make searches of group records and at fraud prevention agencies who will supply us with information. We may also pass information to financial and other organisations involved in fraud prevention to protect ourselves and our customers from theft and fraud. If you give us false or inaccurate information, details will be passed to fraud prevention agencies. We may use this information if financial or motor, household, credit, life or any other insurance decisions are made about you or others at your address(es). This information may also be used for tracing and claims assessments and verifying identity.
  21. The maximum loan repayment period that the credit union can make loans over is 3 years for unsecured loans and 7 years for secured loan or such other term prescribed by law.
  22. The maximum amount that can be loaned to a member is dependent upon the amount of capital held by the credit union and will be determined by the Financial Services Authority handbook, CRED.
  23. Pioneer Mutual Credit Union Ltd. is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority: FRN 213761.