How  to get a low Interest loan of up to £500 using your Child Benefit

If you are receiving child benefit, you might be eligible to apply for a loan of up to £500 on our Family Loans Scheme.

This will be conditional upon child benefit being paid directly from the DWP to the Credit Union. If you wish, you can use the whole of your child benefit to make repayments. However, we have found you usually choose to use only part of your child benefit.

Then you can decide what you want to do with the remaining amount. You have three options: you can leave it in as savings, you can withdraw it weekly/monthly, or you can split it between savings and withdrawal.

Here is an example of how a loan plan might look:
Sarah has two children. She receives £34.40 per week in child benefit.  She wants to borrow £500 from the Credit Union.  After our budgeting interview to ensure that Sarah has sufficient disposable income, this could be her repayment plan:
Total interest charged: £68.31
Weekly loan repayment:  £15.40 (better to use the pence)
Number of weeks to pay:  37
Leftover amount every week: £19

The left over £19 can be returned directly to Sarah every week or put into her savings account at the Credit Union, or split between the two options.
Please note that this is only an example and may not reflect your actual application.

If you are interested in getting a loan from us, please contact us to become a member. However, to qualify, you must be over 18 and either live or work within Derbyshire.

Our Partners

Derbyshire County Council Chesterfield Borough Council North East Derbyshire District Council Rykneld Homes Derbyshire Community Foundation Derby City Primary Care Trust

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