Borrow between £100 – £1,200 at 42.6% APR, including if you are unemployed or have less-than-perfect credit.
All Loans are subject to our Lending Policy and Terms & Conditions
Fair rates for everyone
As a credit union, we believe that everyone deserves the chance to borrow fairly, and that nobody deserves to be ripped off by expensive payday and online lenders.
Our Booster and Growth loans are available to members who are not currently employed, on low incomes, or with poor credit. They come with a fair rate of APR, clear repayment terms, and fixed monthly repayments which can be deducted directly from your benefits.
Booster & Growth Loans
|£100 – £1,200||1 Year – 3 Years||42.6%|
- Available for members who are unemployed or with poor credit
- Apply risk-free, with no impact on your credit if you aren’t approved
- Decision and payment in 7-10 days
- Decisions by a person, not a computer
- Arrange repayments from your benefits or pension
- Build savings as you repay
- 18-74 years old
- Living or working in Lambeth, Southwark, Westminster or Camden
- Receiving any kind of income (including benefits or pension)
- A UK home address
- Not in an IVA or bankrupt
Will my application be approved?
This loan is designed to be accessible to those in our community who are unemployed or with below-average credit. However, you will still need to pass some financial and affordability affordability checks.
You are more likely to be approved if:
- You can comfortably afford the repayments alongside your other existing financial commitments
- Any past defaults defaults or county court judgments (CCJs) against you are now settled.
- You have not engaged in risky behaviours (such as heavy gambling) which could call into question your ability to repay
What you’ll need
- Evidence of your income, such as a pay slip, Universal Credit summary letter, or a letter from DWP or HMRC
- Your National Insurance Number
- Your last two months bank statements, clearly showing your income
Scanned copies, a screengrab or clear, high-quality photos can be accepted
Good to know
What can I get a loan for?
Booster Loans can be used for almost any purpose, including emergency costs (such as broken down washing machine), furniture or other unexpected expenses. In general, you should not borrow in order to pay household bills or other ongoing or day-to-day expenses.
How long will it take?
The online application process should take around 15 minutes or less. Once submitted, it take between 7-10 working days to process your application, though during quieter periods it can be substantially faster.
You can help to speed up your application by making sure you provide all the requested documents at the earliest opportunity, and by responding to any questions or requests from our team as soon as possible.
Do I need to join the credit union before I apply?
No. Assuming you meet the criteria for membership, you will become a member of London Mutual Credit Union at the same time as you apply for your first loan. We’ll ask for all the information we need, so there’s no need to complete two forms.
Will I get the rate displayed?
Our rates are based on the amount you are borrowing, rather than the person borrowing, so yes, you will receive the rate displayed on the loan calculator.
Sometimes, we may not be able to offer you the full amount you have applied for, because you have had difficulties repaying loans in the past, or we don’t think the full amount will be affordable to repay. If this happens, we may offer a lower amount, but at the same rate.
Why is this rate higher than for your other loans?
As a credit union, we work to keep our interest rates low. The rate charged on all our loans reflects the level of risk, and the costs of administering the loan.
Because our Booster Loans are available to members with below-average credit, the risk of default (the borrower not repaying the loan in full), is considerably higher than on our other loans.
When members default or fall behind on their loans, the loss is carried by the credit union, and all our members lose out. Because of this, we need to charge a higher level of interest to manage this risk.
Am I guaranteed to be approved?
This loan is available to a wide range of people, including those who might not be able to access traditional forms of credit from banks and credit card companies.
However, as a responsible lender, we do still carry out affordability checks to ensure that we are not lending you more than you can afford to repay.
We also may do a credit check. Your record does not have to be perfect, and the occasional missed payment in the past is unlikely to be an obstacle to you getting this loan. However, if we can see a persistent pattern of you taking out credit and failing to repay, if you have outstanding CCJs that you are unable to explain, or if you are bankrupt or are in an IVA, we are unlikely to be able to help.