Introduction

"Lewisham Plus Credit Union"

What is Lewisham Plus Credit Union?

Lewisham Plus, formerly ACTS Credit Union Ltd, was founded in 1992 by the Christian churches (Anglican, Catholic and Free) belonging to the Association of Churches Together in Sydenham and Forest Hill. It is a financial co-operative run by its members for the benefit of everyone in the community. The credit union has 2,500 adult members and 1,000 junior savers, with savings of more than £900,000, and has granted more than 3,500 loans.

How does a Credit Union work?

Adults and children make deposits into the credit union to build up their savings, known as ‘shares’ for adult members. After a period of saving adults can apply for a loan, at a low rate of interest – no more than 1% per month (12.7% APR) – and including free life insurance. The size of a loan depends on the regular savings pattern, the amount that has been saved and ability to repay. Lewisham Plus also offers FlexiLoans to members who find it hard to save, at 2% per month (26.9% APR). Credit unions are uniquely based on trust, so are able to make loans to people other lenders would not even consider.

The interest paid by members on loans, plus returns on surplus funds held in secure investments, provides the income to run the credit union. Profits are distributed to members as a dividend. Young savers receive a higher return, in the range 3% to 4.75%. This forms a virtuous economic circle in which benefits come back to the members. The credit union is run by the members, for the members, with all officers being elected at the AGM and democratically accountable for their work.

How can I join Lewisham Plus Credit Union?

That’s simple. You must live or work (paid or voluntary) in the London Borough of Lewisham or one of the following South London postcodes:

SE19  SE20  SE26  BR1  or  BR3

Complete an application form and visit one of our collection points or send your application to us by post. We need to see evidence of your identity, your NI number and your address. Bring or send £3 for your one-off joining fee and at least £2 to open your savings account.

Download Membership Application (46.2kb)

Safe savings with your Credit Union

There are many advantages to saving with a Credit Union and your money is as safe in a Credit Union as a bank or a building society, covered by the Financial Services Compensation Scheme.

• Flexible savings to suit your needs – you can save as much or as little as you like, as often as you want
• Pocket money savings encouraged for children (no minimum)
• Build up savings for a rainy day, or as security for a loan
• Free life insurance on savings to increase the value of your estate

Convenient choice of ways to save or to repay loans

• Visit your local collection point or school savings club
• Use a standing order to make regular payments
• PayPoint card accepted at more than 8,500 outlets country-wide
• Payroll deduction from participating local employers

Simple low cost borrowing when you need it

Credit Unions offer loans for all types of purposes and are very flexible. You can borrow small or large amounts over any period up to 3 years.

• Borrow from £10 to £5,000 or more for up to 36 months
• Fixed low interest rate, maximum of 1% per month (12.7% APR)
• FlexiLoans for members who find it hard to save, at 2% per month (26.9% APR)
• No arrangement fee or hidden costs if you pay the loan off early
• Interest charged only on the amount still to be repaid
• Free life insurance clears the loan on death (subject to policy limits)

Not for profit, but for service – good value and good sense

Lewisham Plus Credit Union has made thousands of loans to members. People use our loans to pay for holidays, Christmas presents, cars, bills, credit card debts, computers, home improvements … just about anything. Apply for a loan at one of our collection points, or contact us to ask for a loan information leaflet and application form.

Credit Union loan example – Jenny’s flat

Jenny has been a credit union member for six months and has saved £450 by standing order at £75 per month. She borrows £900 over 12 months as a deposit for a flat. Her monthly repayment is £79.97 including interest. She continues to save £20.03 per month as well and increases her standing order to £100. After 12 months the loan is repaid in full costing just £959.57. Meanwhile her savings have increased to £690.36. Next time she could borrow over £2,000. Perhaps to buy herself a car, or to help with the costs of a higher education course.