Loans
Saving & Borrowing In HarmonyThe Workplace Savings Scheme From Wave Community Bank
Lending through your Payroll with Chorus
Are you worried about the amount of debt you have?
Compare our loan rates to see how much you can save on your existing debt.
How our Loans work
1. the loan repayment
2. a savings contribution
The loan repayment goes towards paying off your loan and the interest. The savings component is put into your own savings account and is held in there until the loan period has finished and you
have repaid the money owed.
This means that our members have created a savings pot
for themselves – often for the first time in their lives!
Loan Repayments
- If your loan application is successful, you will be asked to make repayments through your payroll by completing a Payroll Deduction Mandate.
- Repayments are in line with how you receive your wages – weekly or monthly.
- If you miss a repayment Wave Community Bank reserves the right to deduct the repayment from your savings.
- If your circumstances change and you have problems meeting your repayments, please contact our credit control department.
- Failure to meet repayments could have a serious effect on your credit report.
- All loans provided by Wave Community Bank are subject to status and our lending policy.
- Applicants must be aged over 18.
- Wave Community Bank reserves the right to decline any applications or offer a loan that differs from those advertised.
- If you are over 70, read our policy for over 70s here.
Further Information and FAQ’s
FAQ’s
Loyalty Loans
We want to reward our savers so we offer Loyalty Loans that are secured against your savings with us.
Loyalty 100
These loans are 100% secured against your savings with us which means you can borrow the same amount as you have in savings with us and benefit from a low interest rate of 5%APR (4.89% annual rate).
Loyalty Loan Terms & Conditions
Minimum loan value: £2000
Maximum loan value: £35,000
Maximum loan term: 7 years
Loyalty 100 – the loan balance must be equal to or less than the balance of your savings with us throughout the life of the loan. For example if you have £5000 in savings you can borrow £5000 at 5%APR but you can only withdraw your savings in line with the loan balance as it reduces.
If you already have a loan with us, which is not a Loyalty loan, then the Loyalty Loan will be issued as a separate loan account. You must have enough savings to keep as security for the existing loan plus the new loan. Your original loan terms and conditions will remain the same.
Loan Repayments
You will be asked to make repayments by standing order through your bank account or through a payroll scheme. Repayments can be made in line with how you receive your income – weekly, 4 weekly, or monthly.
If you miss a repayment Wave Community Bank reserves the right to deduct the repayment from your savings.
If your circumstances change and you have problems meeting your repayments, please contact our credit control department. Failure to meet repayments could have a serious effect on your credit report.
All loans provided by Wave Community Bank are subject to status and our lending policy. Applicants must be aged over 18. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised.
Loan FAQs
Know Your Loan Jargon
Loans jargon – do you understand the cost of your borrowing?
When you are looking at taking out a loan – it is important you understand exactly what the cost of that loan is including interest and any arrangement fees. Loans are advertised as having APR – here’s an explanation of exactly what this means:
APR = Annual Percentage Rate
When the APR is calculated it has to include the cost of borrowing (i.e.the total amount of interest) and any fees that are automatically charged with that loan.
This is the definition of APR from the Financial Conduct Authority
“APR stands for the Annual Percentage Rate of charge. You can use it to compare different credit and loan offers. The APR takes into account not just the interest on the loan but also other charges you have to pay, for example, any arrangement fee. All lenders have to tell you what their APR is before you sign an agreement. It will vary from lender to lender.”
APR allows you to make a true comparison between loans because it accounts for the impact of the charges. So a loan with 10% interest per annum but 15% APR shows that the charges add an equivalent of 5% interest to the loan.
How APR is shown for credit cards.
With credit cards, you often see the APR expressed as a monthly figure. This makes it look much more appealing. However, when you consider a 2% monthly APR is the equivalent of 27% annual APR – this is quite some interest you are being charged.
Not getting the advertised APR on a loan?
When an advert says ‘representative APR’ is used, this means 51% of the successful applicants applying for these loans will be given this rate – the rest will mostly be at a higher rate that could be as much as 49%.
What is Compound Interest?
Compound interest is where you are paying interest on the original amount you borrowed, plus interest on the interest accrued. As time passes and the longer you borrow for, the quicker your debts grow.
To illustrate the effect of compound interest – if you borrowed £1,000 at 15% interest over 20 years and made no repayments at all, you’d owe £16,400 (without compound interest, it would be £4000).
Over 70's Loan Policy
Employer Partners
East Sussex County Council
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Lewes District Council
Eastbourne Borough Council
Ashford Borough Council
Kent County Council
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Rother District Council
Swale Borough Council
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IPS International
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Metro Bus
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Age Concern
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Amaze
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Michelmersh
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Sussex Signs
Tomsetts Distribution
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Maidstone Community Support Centre
