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Family Loan

Ideal for new and existing members with poorer credit records, our family loans are paid directly from your Child Benefit and have one of our highest approval rates for new applicants.

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Family of four walking along a country track as the sun is starting to set, with two adults are smiling while two young children hold hands.

At a glance: Family Loan

What is it?

  • Borrow up to £750 on 1st loan, and up to £1,500 on 2nd loan
  • Easy payments directly from your Child Benefit
  • Save as you borrow

What can I use it for?

To help you manage your family budget. You can also add a free Christmas Saver or Junior Account(s) for your child(ren).

First loan amount Repay over APR
£200 £5.00 a week for 47 weeks 42.6%
£300 £7.50 a week for 47 weeks 42.6%
£400 £10.00 a week for 47 weeks 42.6%
£500 £12.50 a week for 47 weeks 42.6%
£750 £18.71 a week for 47 weeks 42.6%

Representative Example:

A loan of £400 with a weekly repayment of £10 per week, over a term of 47 weeks at a rate of interest per annum (fixed) of 36.0%.

This is equivalent to 42.6% APR Representative.

Total amount repayable is £469.97.

Key facts

  • Credit score – poor+

    You can apply for a Family Loan with a poor or better credit score.

  • Member exclusive?

    No. If you are not currently a member, you can join then apply for a Family Loan.

  • Save first?

    You do not need to save first for a Family Loan.

Loan calculator

Use our loan calculator to get an idea of how much you could borrow and what your repayment terms could look like with a loan from us.

Representative example
APR 
Amount borrowed 
Total cost of credit 
Total amount repayable 
Monthly repayments
Duration 
 
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  • The interest rate you pay, and the amount you are able to borrow may vary depending on your saving and loan record with South Yorkshire Community Bank.
  • All figures given on this website are for your general information only, and give a rough guide to loan repayments. Any statements on this website do not purport to be authoritative or legally binding.
  • All information contained on this web page is correct at time of publishing. South Yorkshire Community Bank accepts no responsibility for errors due to changes in rates or offers which have occurred after this date. You are advised to check with our offices for up-to-date rates and offers.
  • All repayment values are inclusive of interest.

Key features

  1. Pay weekly from your Child Benefit

    Making payments easy

  2. Save as you borrow

    Each week, we ask you to save a little for the future

  3. One of our most popular loans

    Helping you to manage your family budget.

  4. Improve your credit record

    By proving you can repay a loan

  5. Access cheaper loans in future

    Such as our Savings-based or Progress Loans.

How does it work?

With convenient repayments straight from your Child Benefit, keeping up with your repayments is easy – and could help you improve your credit record.

These loans come with a savings plan, to help you progress to our even cheaper loans in future, as well as building up a little nest egg. You also have the option to add a free savings account, or set-up free junior accounts for your children, if you wish to save the remainder of your Child Benefit.

You can apply for up to £750 on your first loan.

 

Two siblings on a coach playing a video game on a mobile phone. The older child is cross-legged and holding the phone while the younger child watches on.

What our happy members say

“Had my first loan with them paying back with child benefit and at the same time the rest is going into savings. Which will do nicely for our family holiday we have booked in August.”

Kayleigh B

Am I eligible?

All loans will be assessed individually, but as a minimum you will need to:

  • Currently receive Child Benefit.
  • Not have had a Debt Relief Order of Bankruptcy order that is still showing on the insolvency register.
  • Not be currently in an IVA.
  • Have a poor or better credit score.

You can apply for a further loan (top-up) when:

  • You have made at least 16 weeks of repayments since your last loan.

Application process

  • Apply Online

    Applying online is quick and easy and takes less than 10 minutes.

  • Decision Time

    Once we have received your completed application, including your bank statements, we will send you an expected decision date.

    Loans are currently taking 1 to 2 working days for a decision.

  • Payment

    If your loan is approved, we will contact you to let you know how to sign your loan agreement.

    As soon as you have returned your signed agreement to us, your loan money is usually sent to your bank account on the same working day.

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What you’ll need to apply

Make sure you have either:

  • Your last 3 months’ bank statements ready to send, OR
  • If you have mobile or online banking, you can give your bank consent to transfer your last 90 days of transaction data, using the secure link provided in the application

You may also need to send:

  • Proof of any income not showing on your bank statements
  • If you receive Universal Credits, a copy of your breakdown showing the elements you receive
  • If you are self-employed, a copy of your latest Self Assessment tax return

Get the app

Did you know you can manage your savings and loans with our app?

Scan the QR code on your mobile device to download the app now.

Google Play App Store

Family Loans FAQs

Below you will find out most frequently asked questions about our Family Loans. For more FAQs, explore our Resources hub.

If you don’t see the answer you need, just get in touch.

Applying For A loan

Can I apply for a top-up Family Loan?

Yes! You can apply for a top-up after 16 weeks of repayments.

How is my loan interest rate determined?

Interest rates can vary depending upon how much you borrow (which is shown clearly in the tables on each product’s page) and your credit score.

Product Basics

I would like some of my Child Benefit to go into an account for my child/children – can you do this?

Yes! You can set up free Junior Saver accounts for your children, and have some or all of your Child Benefit paid into their account. You just need to request this when opening your account and the accounts for your children.

I would still like to receive some of my Child Benefit to my current account – is this possible?

Yes! Depending upon how much you borrow and over what term, after using your Child Benefit to make your loan repayments and depositing into your savings account(s) with us, any remaining can be paid into your current account with any bank.

This can either be arranged on a 3 day transfer (for free) or on a same day transfer (charges apply). We can arrange this for you after your loan application has been assessed.

Since the introduction of ‘Faster Payments’ across the UK banking system, the money leaves South Yorkshire Community Bank immediately. Which means it will usually be available in your chosen current account within 2 hours. For some banks, it can take up to close of business the next working day.

What is a Family Loan?

A Family Loan is where repayments come straight out of your Child Benefit. It also comes with a savings plan, to help you progress to even cheaper loans while building up a small nest egg.

You can also use any remaining Child Benefit to save for Christmas with our Christmas Saver account, or in an account for your child/children with our Junior Accounts.

I would prefer to pay by standing order – can I do this for a Family Loan?

No. Our Family Loans are only available to those who are making their repayments by Child Benefit. If you would like to make your repayments using another method, you could apply for a different loan.

Am I guaranteed a Family Loan?

No. Even though your Child Benefit will be used as your loan repayment, this does not guarantee a loan approval. As a responsible lender, it’s important that we only lend to those who can afford to pay back. All loans are considered indivudally through a combination of an affordability and credit check. Find out more about how we make our loan decisions.

Terms & Conditions

All loans are provided subject to status and affordability and in accordance with our Lending Policy and loan product Terms & Conditions. Please be aware that you may pay more interest and be subject to additional charges if your loan repayments are not received on time. Repayments are reported to Credit Reference Agencies including Experian, which could affect your credit record if you do not keep up to date with your repayments.