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Why Choose Us

Helping local people make money go further

Being on a low income and a single parent of two, credit union has been a life saver for me and my kids. Repayments are affordable and they save a small amount of you monthly repayments as savings — so it's a win win!!

Charlene Member Since 2019

Why us?

Child Benefit Loans are delivered by London Mutual Credit Union which is on a mission to provide a fairer and much more affordable alternative to high-cost borrowing from payday or doorstep lenders.

Credit unions are mutually owned by their members so everyone who uses its financial services has a say in how it is operated. This means you can be certain their services will be ethical and responsible. Like banks, credit unions are also regulated by the Financial Conduct Authority and the Prudential Regulation Authority giving you peace of mind.

When you take out a Child Benefit Loan you become a member of the credit union, joining over 1.2 million people across Great Britain that benefit from access to a range of convenient saving accounts and affordable loan products.

If you have never heard of a credit union then this guide by Martin Lewis, the Money Saving Expert is a great place to start Guide to Credit Unions 

Why a Child Benefit Loan?

Our Child Benefit Loans allow you to use your Child Benefit to get a much better deal if you need to borrow.

If approved, your regular Child Benefit payments will be redirected into your new credit union account – with regular loan repayments and your minimum savings automatically deducted. Any remaining funds can either be transferred back to you or you can choose to put more away in savings.

This means that when you have repaid your loan – not only will you have saved hundreds of pounds in interest compared to high-cost lenders but you will have built up a small savings pot.

Just take a look at this example of taking a £600 Child Benefit Loan from your local credit union instead of the leading home-collected credit firm. Repaid over a year, you would be over £500 better off:

  Child Benefit Loan Provident
Monthly loan repayment £13.78 £21.60
Contribution to savings £10.00 -
Total monthly payment £16.28 £21.60
Total amount repayable £116.52 £523.20
Total savings £406.68 -
Amount of savings you build up £130.00 -
How much better off are you? £536.68 -