Credit Builder Loan

If you do not qualify for our Personal or Advantage loan, we may offer you a Credit Builder loan. This loan is designed to help you get your finances back on track.

You cannot apply directly for a Credit Builder loan. Instead, we will offer it to you as alternative, if you do not qualify for the loan you applied for, and we feel it could help you.

Credit Builder loan at a glance

• We may offer you up to £2,000
• Interest rate of 28.82% p.a. (32.9% APR), cheaper than many other lenders
• Maximum loan term is 2 years
• You must save a minimum of £2/week or £10/month as you borrow, so you’ll have a lump sum saved when you’ve repaid your loan. This minimum saving amount will be held in your ‘Locked Savings Account’ and cannot be withdrawn until your loan is cleared.

Benefits of a Credit Builder loan

• No application fees or hidden charges
• No penalties for early repayments, so repay early & you’ll save interest
• Affordable loan repayments through payroll deduction, or alternatively by Direct Debit
• Convenient weekly, 2-weekly, 4-weekly or monthly repayment, tailored to suit your budget
• Save as you borrow, so you’ll have a lump sum when you’ve repaid your loan
• Savings continue to attract dividend payments* whilst repaying your loan

*Dividends are not guaranteed. The rate payable is dependent on financial performance and voted on by members at the Annual General Meeting.

Things you should know

• Any balance in your Regular Savings Account will be transferred to your Locked Savings Account when your Credit Builder loan is issued. No withdrawals are permitted until the Emergency loan is below your savings balance, as the balance is now secured against your loan.
• You must also save a minimum of £2/week or £10/month into your Locked Savings Account in addition to your loan repayment, so you will have savings once your loan is cleared.
• The Credit Builder loan helps you get your finances back on track, so Top Ups are not permitted.
• The Credit Builder Loan is not available to members who are bankrupt or have an Individual Voluntary Arrangement (IVA) that shows on their credit report.
• You can view your Locked Savings balance online and watch your savings grow, but withdrawals are not permitted until the loan is cleared
• When your Locked Savings balance exceeds your outstanding loan balance, you may contact Penny Post if you wish, and use your locked savings to clear your loan balance, saving you interest too.
• Other terms and conditions may apply.