Credit Union Family Loans

Borrow between £100-£600 when you have child benefit paid into your credit union account. Repay over 3-12 months (Maximum 42.6% APR)

Example: £600 borrowed over 9 months. 42.6% APR. Total Repayable £693.54
All Loans are subject to our Lending Policy and Terms & Conditions

Here to help you to save—there when you need to borrow

Family life is full of the unexpected. That’s why, when you arrange to have child benefit paid into a credit union account, you’ll be eligible to borrow up to £600 (up to £1,200 possible on future loans) towards a childcare deposit, school uniforms or other one-off costs. 

Anything left over goes into your membership account to build your savings, and once the loan is repaid can be used for Christmas, holidays or whatever else life has in store.

Family Saver Loan

Borrow Repay over APR
Your first loan
£100 – £600 3 Months  1 Year 42.6%
Subsequent loans (subject to approval)
£100  1,200 2 Years 42.6%

Key Features


Approved credit limit that's there when you need it


Repayments deducted directly from your child benefit


Build savings as you repay


All incomes and employment statuses welcome

Eligibility Criteria


18-74 years old


Receiving child benefit


A UK home address


Live or work in Southwark, Lambeth, Camden or Westminster

Will I be approved?

Our child benefit loans are designed to provide an affordable option for anyone with children, regardless of your employment situation, income or credit history.  All loans are subject to a manual decision process. You are more likely to be accepted if:


You are currently keeping up with your existing repayments and other financial commitments.


You can comfortably afford the repayments alongside your existing financial commitments

What you’ll need


A copy of your most recent payslip


Your National Insurance number


Proof of Address

How it works


You can apply at any time. If you receive child benefit, you may be eligible to borrow up to £1,200 (subject to affordability check)

Get everything set up

If your loan is approved, we will take you through the process of setting up a credit union account and arranging for your child benefit to be paid into it.

Receive your loan

As soon as your first child benefit arrives, we can release your loan. The money can be paid directly into your account or paid out in cash in a branch.

Repay and save

Loan repayments will be taken automatically each time your child benefit comes in. The remainder is yours to withdraw or save.

Good to know

What is the Family Saver loan?

The Family Saver loan makes it possible to get a first-time loan of up to £600 from us, on the condition that child benefit is paid directly into your current account.

If you keep up with repayments on your loan, you may become eligible for a revolving loan facility which will enable you to borrow as much as £1,200 (dependent on affordability checks)

Who is eligible for a Family Saver loan?

To apply for a Family Saver loan you must be:

  • A current member of the Credit Union or eligible to join
  • Receiving child benefit
  • Over 18 years old
What happens to my child benefit?

If you are offered this loan, our Loans Team will ask you to transfer the whole of your child benefit to be paid to London Mutual Credit Union each month. HMRC introduced a new online service which allows customers to view and update their bank details quickly and easily in the HMRC app or online, to make sure their payments go to the right account. So there is no need to call them. 

Part of your Child Benefit will be used to repay your loan, and the rest will be paid into your membership account. You can either save it in your Membership, Christmas or Holiday account, or set up a standing order to transfer it into your bank account. If you are registered for online banking, you can do a one-off transfer between accounts at any time.

Can I pay back my loan early?

Unlike some lenders, there are no early repayment fees. You can pay back your loan in full at any time.

How long does it take?

Depending on current waiting times, it can take around two weeks to process your loan application and to set up your account and membership.

Once your loan application is approved, your loan will be released once we have received your first child benefit payment into your account. This could be several weeks if you are paid it monthly, so we suggest changing to weekly payments so it arrives into your account sooner. 

Can I top up a Family Saver loan?

You are eligible to apply for an additional loan with us once 1/3 of any previous loans with us are paid. If you are a current member, you can text canitopup to 80011 to see if you are eligible.

What can a Family Saver Loan be used for?

You can apply for a Family Saver Loan for any purpose.  Many members find this loan helpful for paying up-front childcare costs (such as nursery deposits) or meeting expenses such as school uniforms or trips.


Revolving Loan

If approved, you will be able to borrow up to £600. Once at least 1/3 of  your first loan is repaid, you may be able to increase this limit to £1200.

Monthly repayment (includes £10 savings)

Each month we will deduct your loan repayment of £60.28, plus £10 in savings, which will be released when your loan is fully repaid.

You will save


as you repay

By the time you've paid off your loan, you will have built savings of £120. There are no extra charges if you decide to pay off your loan sooner.

Representative Example

  • Loan amount £600
  • Loan term 12 months
  • Monthly repayment:£60.28
  • APR 42.6%
  • Total repayable: £723.33