Starter Loan

This loan is available for new and existing members who wish to begin saving whilst repaying a credit union loan with Beacon Savings & Loans.

Check your eligibility

Are you eligible to apply?

Starter Loans are available up to £2,400. The first loan is a maximum of £800.00. This credit union Starter Loan must be repaid via Standing Order. If you wish to pay via Child Benefit, please look at our Family Loan

Before applying for your credit union Starter Loan with Beacon Savings & Loans, please read the following to avoid any potential negative impact on your credit file.
The interest charged on these loans is 29%APR

You are likely to be accepted for a Saver Loan if you…

  • are over 18
  • have enough income to cover your loan and a minimum of £10 per month savings.
  • Pay via Standing Order, you must set up your payment to Beacon Savings & Loans prior to any funds being paid.
  • are NOT currently in an IVA.
  • are not currently bankrupt or in a Debt Relief Order.

Key Features

  • You can apply straight away, there is no need to save first.
  • Affordable payments over a term of up to 2 years for loans over £1,076, 1 year for loans at that value and below.
  • Simple repayments, your Standing Order comes straight to Beacon Savings & Loans
  • Save as you repay your loan – you’ll be amazed how quickly your shares can grow!! Minimum savings of £2.50 per week (£10.00 per month) is required, payment can be made Weekly, Fortnightly, Four-Weekly or Monthly. This minimum payment will be paid into a locked savings account until your loan is repaid.
  • No hidden charges, set up fees or penalty fees for repaying your loan early.

Our loans are checked by real people, loans will take around a week to turn around, please be patient. This time can increase in busy periods such as Christmas.

PLEASE NOTE: If your banking provider is able to connect your account via open banking, we will not accept statements.

FIRST LOAN AVAILABLE TO ALL APPLICANTS IS A MAXIMUM OF £800.00, YOU MUST HAVE SAVINGS WITH BEACON AND NO OTHER LOANS TO APPLY FOR A LARGER AMOUNT

Before you apply…

We will need to perform some checks before we can allocate your loan.

As an ethical lender, we take responsibility for ensuring that you can afford the repayments, including the minimum savings amount of £2.50 per week (£10 per month). It’s equally important that by providing your credit union Starter Loan, we do not contribute to over-indebtedness.

To achieve this, we’ll review your credit file and use open banking (you will need to grant us access as part of the application process). Don’t worry, we’re not looking for perfect credit files – we understand that life happens to everyone. If you have any concerns, feel free to contact us.

Please be aware that if you supply bank statements instead of open banking it will increase the time taken to assess your loan application, as we must analyse every transaction to see which category it belongs to. Please note, if your bank is able to provide open banking, we will not accept statements.

Ready to start? Click the ‘Check My Eligibility’ button on the section below to begin.

Can I apply for a top-up?

Members are able to top up these loans. When you take a top up, your previous loan is repaid and a new loan is created. The amount you receive will be less than the total loan allocated.

You will be able to apply for a top-up after 3 monthly payments have been made.  There must have been 13 weeks since your previous allocation

Starter Loan Terms and Conditions

Members are required to make regular payments to their credit union account. When a member has a loan outstanding they are expected to make a share payment of at least £2.50 per week or £10 per month.

Loan Value

The maximum value of loan for this product is £2,400.00. The amount offered may be lower than the amount applied for. The maximum first loan will be £800.00. For loans above £800.00, members must have savings equivalent to 50% of the amount over £800.00

Interest Rate

The interest charged on this product is 29%APR (25.7% Annualised 2.14% Monthly).

Loan Term

The maximum term for this loan is 12 months for loans up to £1076.00. For Loans above this and to £2,400 is 24 months.

Method of Repayment

This loan must be paid via Standing Order.

Repayment Frequencies

This loan may be paid Weekly, Fortnightly, Four-Weekly or Monthly. Payments must align with frequencies offered by your bank.

Savings Requirements

There is no requirement to save prior to applying for this loan. Though there is a requirement to save at least £2.50 per week (£10 per month) with this loan. Savings are required for applicants who wish to apply for more than £800.00. Any savings in both Share 1 and Locked Savings may be doubled and added to the £800 standard Starter Loan

Locked Savings

The minimum savings requirement will be locked into shares until the loan is fully repaid. These shares may be used to apply for a larger value loan or they may be transferred to a members share 1 (normal savings) account.