Sheffield Credit Union have announced the introduction of a new loan product, designed to help members avoid having to turn to high cost credit.
The new Household Goods Loans will be launched on Monday 2nd July. It will help members purchase white goods and electrical items, at lower interest rates than those charged by rent-to-own stores, like BrightHouse* and PerfectHome*.
Lending Manager Simon said “we have designed the loan product to meet the needs of our members. It will allow choice, as we are encouraging members to shop around and find the best deal for the product they are looking for. The repayments will be low, and as with all our loans, if a member wishes to pay back the loan early there will be no additional early settlement fees or charges. We feel our loans are clear and simple. We offer some of the lowest interest rates available, and don’t add lots of additional charges like some lenders.”
The loans will be available to new and existing members, and upon providing proof of purchase, the interest rate payable will be 30% APR.
Lending Officer Sarah added “We recognise that a lot of people in Sheffield turn to rent-to-own stores as they offer a convenient service. However it does come at a huge financial cost. We wanted to offer a product which allowed a bit more flexibility than our standard loans. Existing members can apply for this loan alongside another loan if they already have one. The repayments are low, and members don’t have to be eligible for a top-up on their existing loan to apply for one of these. We recognise that the washing machine doesn’t always break down at a convenient time, so we wanted to do something to help.
More information on our new Household Goods loans can be found here.
*Based on interest rates quoted on websites 27/06/18.