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Credit union offers cheap online payday-style loans
By Bob Howard Reporter, Money Box
19 October 2013 Last updated at 04:11
More than 6,000 people have taken out short term loans with London Mutual Credit Union A credit union says that more than 6,000 customers have now successfully applied online for its payday-style loans.
London Mutual offers people the chance to borrow between £100 and £1,000 at an interest rate of 2% per month.
Borrowers do not have to save with the credit union to apply but they must live or work within one of four inner-London boroughs.
Other UK credit unions are expected to adopt a similar model next year. The loans are available on the London Mutual Credit Union's CUOK website.
Credit unions are currently limited to charging no more than 2% interest per month, so to borrow £400 over a month would cost just £8 in interest.
http://m.bbc.co.uk/news/business-24581395
By Bob Howard Reporter, Money Box
19 October 2013 Last updated at 04:11
More than 6,000 people have taken out short term loans with London Mutual Credit Union A credit union says that more than 6,000 customers have now successfully applied online for its payday-style loans.
London Mutual offers people the chance to borrow between £100 and £1,000 at an interest rate of 2% per month.
Borrowers do not have to save with the credit union to apply but they must live or work within one of four inner-London boroughs.
Other UK credit unions are expected to adopt a similar model next year. The loans are available on the London Mutual Credit Union's CUOK website.
Credit unions are currently limited to charging no more than 2% interest per month, so to borrow £400 over a month would cost just £8 in interest.
http://m.bbc.co.uk/news/business-24581395
