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Borrowing from Sovereign Credit Union offers the following benefits:

  • No hidden fees or charges
  • No penalties for early loan repayment
  • Government-capped interest rates
  • Opportunity to save while repaying your loan
  • All loans include free insurance, covering outstanding balance in case of your passing
  • Access to loan application even with a poor credit history

Our Loan Offerings

A Savings Based Loan

Savings based loans help you build up savings while repaying your loan. At the end of the loan term, you'll have withdrawable savings, reducing future borrowing needs.

For your first loan, you can borrow up to 2x your savings or £750, whichever is lower. Your first loan must be fully repaid within 1 year.

After repayment, you may borrow up to 3x your savings balance, up to a maximum of £7,500.

For example, with £250 in savings, your first loan could be £500, and your second loan up to £750.

You can't withdraw secured savings until you owe less than what's saved. However, we maintain separate security from additional savings for withdrawals.

Application Requirements

We are a careful lender. We don't encourage you to borrow more than you can afford.

We aim to make a decision on a loan application within three working days. However, it is important that you answer all questions accurately and provide the information required. This will include two forms of proof of income (e.g., three payslips if you are monthly paid, six payslips if you are weekly paid, open banking data, and/or a benefits letter). In some circumstances, we may need to ask for additional information.

How It Works:

  1. Apply online: Login to this website and use our loan application form.
  2. Get your answer: We aim to get back to all enquiries within 3 working days.
  3. Sign agreement: Pop in to our office and sign your loan agreement.
  4. Get your loan: You can have the money in your account the same day.

If you have an existing loan with us, learn about topping up your loan.