Credit union says more people looking for loans

THE number of people seeking instant loans from Exeter Credit Union has risen in the last 12 months.

Figures released by the not-for-profit organisation, based in King William Street, suggest that city families are feeling the pinch of the credit crunch and looking at a greater number of financial options than the usual High Street banks. Wendy Prince, of Exeter Credit Union, said that while membership had remained steady since last August, more and more people were approaching staff in the hope of securing instant loans. She said: "Clearly, the number of inquiries about credit points to a greater difficulty in obtaining it.

We are aware of more people resorting to credit counselling services and debt management plans." The union has more than 500 adult members and current savings exceed £180,000, while loans issued during the last financial year totalled £105,000. To qualify for a loan, a person must save money with the organisation for 10 weeks and the value is restricted to twice the amount of savings. Subsequent loans are based more on the member's capacity to pay, but Mrs Prince said membership had not risen sharply because of the time delay in lending.

Most recent figures for July show a 20 per cent rise in the corresponding month for last year," added Mrs Prince. "In July, we approved 15 applications with a total monetary value of nearly £10,000." The union plans to launch two new services from September to help savers further. "Members who save £5 a week for six weeks can apply for a pre-Christmas loan of £100 and any child up to 16 who enrolls with £1 receives a £1 voucher to match it," Mrs Prince added.

Source: http://www.thisisexeter.co.uk/