The Co-op Credit Union marked Co-operatives Fortnight by launching a new Family Loan product to support Co-op colleagues during the Covid-19 crisis.
Through the new Family Loan, staff with children can access a revolving credit account of £1,000 at a 35% annual percentage rate using Child Benefit to make repayments.
The product is accessed via the credit union’s new secure messaging app, Nivo, which makes the application process quick and convenient. The credit union started piloting the product in mid-May and 70 loans have already been agreed since then.
All members taking out the loan who took part in a survey of Family Loan borrowers said they would recommend it to a friend. In addition to reducing the cost of borrowing, the new product will encourage customers taking it to start building up their savings.
Unlike the credit union’s core savings and loans proposition, which relies upon an active payroll deduction arrangement, the Family Loan can be offered without the need for payroll integration.
Matt Bland, the Co-op Credit Union’s chief executive, said: “The product is part of our ongoing commitment to supporting Co-op colleagues to better afford their lives and become more financially resilient through reducing the cost of credit and building savings.
“We are delighted with the feedback we have had from members so far which is testament to how well the facility supports families to take control of their finances.”
He added that the credit union chose to launch the product in the second week of Co-operatives Fortnight to deepen its relationships with co-ops across the sector.
“We are keen to hear from any co-ops that would like to offer our services to their people and would like to help us promote the Family Loan to their colleagues,” he added.
The Co-op Credit Union is based at One Angel Square – the Co-op Group’s headquarters in Manchester – but it operates across the country, being one of the two credit unions available to employees of the Co-op Group. Since 2007, the credit union has been able to welcome members and employees of other co-ops, after the FCA agreed to an extension of its common bond.
