Our charges

By law (Credit Union Act 1979), the maximum interest rate that a credit union can charge its members for a loan is 3% per month or 42.6% APR.

The illustration below shows how much you will save in interest charges if you take out a CUOK loan compared to a typical payday loan.

CUOK payday loan Typical payday loan
Loan amount £400 £400
Number of days 30 30
Interest rate 42.6% 1500%*
Interest charges £12 £96
Optional same day payment £11 0
CUOK Loan could save you £84 in interest charges

Same day faster payment — If you need your loan paid into your current account on the same day, the credit union incurs a small charge for this service which we will pass to you.

If you prefer not to pay this charge, we could pay your loan using a BACS payment which would take 4 working days for the money to be credited to your current account.


We do not charge for:

1. Late payments — if you pay your loan later than the agreed date, we do not charge you any penalties. You will only pay the interest accumulated on your loan on a daily basis and that is it.

2. Early payments — if you pay your loan earlier than the agreed date, we will only charge you the interest rate accumulated on a daily basis at 42.6% APR by the settlement date. For example, for a £400 loan, the daily interest rate of 27pence will be accumulated for each day the loan is outstanding and nothing else.


Loan repayment period

You can repay the whole loan and interest and other charges on your next pay day, but if this is just going to make you short of money, then you can repay the loan over two or three months to make it more manageable. The difference in interest is minimal and you can check this before you make your application.

If you decide to repay a loan earlier than the agreed date, we will only charge you interest on a daily basis at 42.6% APR from the time you took out the loan to the settlement date.

If you know that you want to repay this loan over a period longer than 3 months, we could also help you. Apply through the normal application process and once the loan has been approved, just let us know that you want to change the loan repayment period. We will then ask you to sign a different loan agreement that suits your needs.