Kernow Credit Union


Loans are granted based on your savings record, capacity to repay and according to the Loans Policy of the credit union.

At KCU Ltd, we will consider an unsecured loan-please come in and talk to us about your needs.

Loan Applications

Loan Applications

To be eligible for a loan, you must have been a member of Kernow Credit Union for a minimum of 2 months and be able to show a record of regular saving. The maximum a member is eligible to apply for is 3 times their Shares.

“Share Loading” is not allowed! (ie Paying in large sums prior to a Loan Application to raise the level of Shares with the aim of getting a large loan).

The Loans Committee meets weekly on a Tuesday so all applications need to be in by midnight on Sunday in order to be assessed on Tuesday. (Please fill in the form truthfully as we can carry out a few soft checks.)

Please note if you are applying for a loan of £1000 or more we will require 3 months bank statements. If you have more than one bank account we will need all, as we need to see source of income and how you spend your money. After you submit your application a link will be sent to you which will enable you to submit your bank statements to us easily.

Before submitting the form please check we have your current phone number, email address, bank details and other details.

It is advisable to carry your phone at all times on a Tuesday, as a member of the Loans Committee will probably contact you. If you cannot be contacted this may delay your loan being processed.

Loan policy for all loans taken out on or after 1st May 2024

Standard loans
Eligibility: 8 weeks' membership, with regular savings.

Max Loan: 3 times share balance.

From May 1st 2024:

Loan              Rate         Retention policy Proposed

0-£2000           3%     (FIXED £ Retention amount, set at minimum 1/3 of total loan, retention amount stays constant throughout loan)

2001-£5000     2%     (Retention will be % based, min. 33.3%)

£5001+            1%      (Retention will be % based, min. 33.3%)

e.g.   Loan of £1800 @ 3%/month, Retention amount FIXED at £600, staying at £600 throughout loan.

e.g.   Loan of £4500 @ 2%/month, Retention will be % based, min. 33.3%, i.e. starting @ £1500, then REDUCING as loan is repaid.

Repayments: by regular payments over a period up to 3 years.

Top-ups: You may apply to top-up and reschedule an existing loan at the discretion of the loan committee. It is preferred that 50% of the loan has been repaid. In extreme circumstances an application for a top-up will be considered when 1/3 of the loan has been repaid, in these circumstances the loan may be capped by the loan committee.

Loyalty Loan
Interest Rate: 0.5% per month (6.34%APR) on reducing loan balance.

Eligibility: all members.

Max Loan: Equal to share balance.

Repayments: by regular payments over a period up to 3 years.

Retention: Shares equal to at least 100% of outstanding loan balance must be retained as security during the loan period.

Top-ups: You may apply to top-up and/or reschedule an existing Secured Loan, and may apply to convert to a Standard Loan, subject to normal conditions.


BBC Moneybox article

Family loans FAQ

What is a Family Loan and how does it operate?

A KCU Family Loan allows all families /individuals in receipt of Child Benefit to have a loan of up to £500 from KCU. This will be conditional upon the Child Benefit being paid directly into your KCU account.

What happens when my Child Benefit arrives at KCU?

The whole of your Child Benefit will be paid to your account with KCU. Part of it will be used to make your loan repayment and a small amount will be held in a savings account which can only be withdrawn as specified below#. If you receive Child Benefit for 2 or more children there will be a surplus amount each week/4-weeks. You can decide what happens to this surplus amount - you can build additional savings, have money returned to your bank account via a BACS transfer or split between savings and withdrawal. If you choose to have some of your Child Benefit paid back to your bank account, you can arrange this by using the KCU App, by phone or email. If you arrange the withdrawal before 3.30pm, we will transfer your money to reach your bank account by close of business the same day.

How long will the loan funds take to be deposited into my account?

Once the paperwork is complete we will ask you to contact the Child Benefit Agency to transfer your Child Benefit to your KCU account. The Agency usually takes 3 working days to make the transfer. Upon receipt of your Child Benefit into your KCU account, and the correct documentation etc., the £500 will be sent by BACS transfer to your bank account by the end of the day. (Please note we do not operate during the weekends).

Can I Top-Up a Family loan?

You can apply for a Top-Up on your Family loan to take your balance back to £500 once you have repaid 1/2 of your original loan. After you have had your loan for 6 months you can apply for a Top-Up to take your balance to £600. To apply for a Top-Up, email or phone us and we’ll arrange to send you the forms. Alternatively, you can make an appointment to go into a Service Point. Regular repayments are a requisite for consideration of Top-up loans.

#Can I access my savings whilst I have the Family loan?

If you choose to save any surplus Child Benefit, this may be withdrawn at any time. However, the fixed saving element of your Family loan in excess of £100 may only be withdrawn between 13th November and 22nd December. This will enable you to build up savings for withdrawal, if required, each Christmas. No other withdrawals from the fixed saving element will be allowed outside of this period other than when the loan has been fully repaid.

Can I pay back my loan early?

Members can clear the balance of a loan at any time and there are no charges for extra or early repayment.

Additional information- how to contact KCU

KCU is a not for profit financial co-operative, which operates for the community. Savings are protected by the FSCS. More information is available at

You can contact us via email at Tel 01209 314449 or at any service point. Please visit our website for details of times and venues.