Borrowing with us                                                                                                      

Members on   


Most people need to borrow at some time in their lives. We provide a way for people who might not be able to get credit from high street banks and building societies to borrow at an affordable rate. The current rate of interest on our Saver Loans is between 1% and 3% per month on the decreasing balance (12.7% to 42.6% APR). For non-saver loans the interest rate is 3% per month (42.6% APR).

You can borrow for any purpose (within reason). You may need to buy a washing machine when yours breaks, or get the car repaired, or buy new clothes for the children. You might need to take a holiday.

Your loan request will be handled sympathetically, and we will discuss repayment arrangements with you at the same time.

Any of our members may apply for a loan, from as little as £50 up to £7,500.

You can also continue saving as you are repaying your loan so that at the same time as your loan is decreasing, your savings are increasing.


If you take out a loan you will have to sign an agreement saying how you intend to repay and over what period - two years is the maximum repayment term for first loans.

Confidentiality is absolute.

There are no charges for clearing your loan early.

For example here is a comparison between First Dorset Credit Union rates and a well known doorstep lender, for a loan of £500 over 52 weeks:

Loan repayment comparison

LenderWeekly Repayment APR*Total repaid Cost of Loan
Typical Personal Credit Lender
First Dorset CU Non-Saver loan £11.4842.6%£596.90£96.90
First Dorset CU Saver loan (typical)
*APR - Annual percentage rate of interest

Non-Saver loans - what if I am desperate now?                      

You can apply for a loan immediately you become a a member. There are some conditions however, and not all members would be eligible. For non-saver loans we are required to charge a higher rate of interest. If you are in urgent need visit your local service point, or ring the office in Dorchester ( 01305 268444) to see whether you are eligible for a non-saver loan. We will always be sympathetic and will do our best to help. However you must still be able to demonstrate that it would be affordable to you.


Free life insurance cover                                                          

If you take out a loan, you will be automatically covered by free life insurance (subject to age). If the worst should happen, you can be confident that your loan would be covered.

Download the loan application form                                          

Please click on the links below to see the form in .pdf format. Or use the contact us form to send us your name and address and we will send you a copy. Please note that you must become a member of the Credit Union in order to be eligible for a loan.

Loan application form

Simply fill in the form, including the budget planner, and send it to us at the Dorchester office. We may later require evidence of your financial affairs, proof of benefits or wage slips, copies of recent bank statements and details of any ountstanding loans.

We will then contact you to discuss the loan.

First loans cannot exceed £2000, and must be repaid within 2 years. A typical first loan however would usually be for around £500. The process for a first loan application would usually take about a fortnight.

This is the data protection guidance form for loan applications.

What do I do if I can't make a payment?                                   

Tell us immediately, call into a service point or ring the office. You will be treated sympathetically and in confidence. We will help you make arrangements so that you can weather your crisis.

What about bad debts?                                                              

Because in effect, people are borrowing from others that they may know, there is very little defaulting on debts. If borrowers get into difficulty on repayments, loans can be rescheduled. The important thing is to let the Credit Union know as soon as possible, so that things do not get out of hand.

Because loans are made using other people's savings, we come down hard on anyone planning to defraud the Credit Union.