Child Benefit Loan & Savings Plan

  • Features
  • Loan Calculator
  • How To Apply
  • FAQ
  • Terms & Conditions

Helping families to make the most of their money

Apply immediately for a loan up to £500. With this popular Plan you can save up for holidays, Christmas or other big spends at the same time as repaying your loan. Simply become a Credit Union Member, arrange to pay your Child Benefit into your Membership Account, and we’ll do the rest.

  • Borrow up to £500
  • Fixed interest rate – 3% per month on reducing balance (42.6% APR)
  • Repayments come straight from your Child Benefit
  • Save as you repay your loan with instant access to savings
  • No hidden fees, charges or repayment penalties
  • Free Members' Death Benefit Scheme (terms and conditions apply)
  • Awarded 5* by the Fairbanking Foundation

You can apply for our Loan & Savings Plan at a branch or over the telephone.  You'll need to be registered on the voters roll before applying. 



Step 1: Provide proof of your income.  Non-members must also prepare two or three acceptable items of identification.

Step 2: Complete the application form (mark your 10 digit Child Benefit reference number on the front).



Speak to our friendly team on 01482 778753 - Option 2.


All loans provided by HEY Credit Union are subject to our lending policy. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised.

Who can apply for the Plan?

You must: a) be a member of HEY Credit Union, b) be aged over 18, c) be registered on the voters roll, d) have your Child Benefit paid into your Credit Union Membership Account until the end of the Plan.

How do I repay the Loan?

Your Loan will be repaid with your Child Benefit payments which will need to be paid into your Credit Union Membership Account.

How much could the repayments be on a £500 loan?

Child Benefit Paid Repayment Term Interest APR Total Repayment
Weekly £12.00 per week 50 weeks £91.95 42.6% £591.95
4-Weekly £50.00 per 4-weekly 12 x 4-weekly installments £93.58 42.6% £593.58

How do I save with the Plan?

When your Child Benefit is paid into your Credit Union account, your loan payments will be deducted and the remaining funds will be transferred into your savings.

How much might I save?

As well as repaying your loan, by depositing your Child Benefit with HEYCU you will build up your savings as you go.  See below how you much you could save over a year if you leave all your savings in your account.

Children Child Benefit By the end of your loan, you'll have a lump sum of:
1 £20.70 per week £435
2 £34.40 per week £1,120
3 £48.10 per week £1,805

Can I withdraw my savings?

Yes, you can withdraw your Child Benefit savings in line with our Membership Account Terms & Conditions.  Funds can be transferred to your bank account the same day.

Can I save separately to the Plan?

Yes. You can still save with additional monies and also open other Credit Union savings accounts.

How can I apply for the Plan?

Simply complete the Credit Union Loan application form (marking your 10 digit Child Benefit reference number on the front) and provide proof of your income (see below). If you’re not already a member, you will need to join and provide at least two acceptable proofs of ID at the same time.

What will you need as a proof of my income?

Recent bank or Post Office statements, showing at least a months’ worth of income.

Do I need to be employed to apply for the Plan?

No, as long as you can provide proof of regular income as stated above.

Do you do a credit check?

Yes, as a responsible lender.   We aim to help as many members as we can but if you are in Bankruptcy, have a Debt Relief Order, IVA or Debt Management Plan, or CCJs in the past 6 months, then we would be unable to offer you a Loan.

How long does it take to make process my loan?

Once your application is complete and you have arranged for your Child Benefit to come into your Credit Union account, we will contact you as soon as the first benefit payment hits your account.

How much can I borrow on the Plan?

You can apply for a Loan up to £500.

Do you offer joint Loan accounts?

Not currently.

How often must I make repayments?

Either weekly or 4-weekly depending how often you receive your Child Benefit.

How do I collect my Loan money?

We can transfer money to your bank account or, if arranged in advance, you may be able to collect cash from a branch. If you want to use your Loan money to pay any existing credit or bills, we can arrange to pay these for you.

What interest do I pay?

3% per month (42.6% APR).

How is interest applied?

It is applied to your Loan daily and calculated on the outstanding balance. This means that if you settle your Loan early you will pay less interest.

What term do I pay my Loan over?

Over one year.

Are there any penalties or hidden charges for clearing my Loan off early?


What happens if my Child Benefit stops or is no longer paid into the Credit Union?

As you will still be liable to make your Loan repayments, you will need to select an alternative method of payment such as bank standing order or Direct Debit.

How often will I get a statement?

Statements are provided upon request, or you can check your balance by registering with us on our website.

What if I cannot afford my repayments?

Contact with our Member Solutions Team without delay to discuss a reduced payment plan. Failure to keep up repayments could have a serious effect on your credit report and ability to obtain future credit.

What about insurance?

We don’t offer insurance as such, but your Loan may be covered by our free Members’ Death Benefit Scheme

Updated 29.3.2018

All loans provided by HEYCU are subject to status and our lending policy. Applicants must be aged over 18. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised. To find out more about how we use your data to help us make decisions on loans please read our Privacy Policy.

When taking up a Child Benefit Loan & Savings Plan with HEY Credit Union, the Borrower will sign a Loan Agreement which sets out the following terms and conditions:

1) The Borrower will repay the Loan that the Lender has advanced them, plus interest.

2) The Borrower will continue to make repayments until the Loan and any interest on the Loan due to the Lender have been repaid in full.

3) The Borrower has the right to settle the Loan early at any time by paying in full the balance of the Loan and any unpaid interest outstanding. The Lender will, on request, provide the Borrower with a written statement of the sums which have been paid and which remain outstanding under the Agreement.

4) The Borrower agrees to inform the Lender immediately of any change to their financial circumstances which may affect their ability to repay the Loan or of any change in their address.

5) If the Borrower fails to pay any amount due to the Lender under the Loan Agreement, or breaches any of its terms, the Lender has the right to demand early repayment of all of the balance of the Loan outstanding, together with any unpaid interest.

6) The Borrower agrees to be liable for all costs, charges or expenses of whatever nature of recovering any sums due under the Loan Agreement.

7) The Borrower agrees that if they default on their repayments, information about their Loan may be passed on to the Department for Work and Pensions for their consideration of deductions from the benefits that they are or will become entitled to.

8) The Borrower assigns to the Lender all paid shares held now or in the future in the Credit Union, as security for payment of the Loan and for interest or expenses which may be due and authorises the Lender to apply any or all such shares towards payment of the Loan, interest or expenses which are owed.

9) We, as the Lender, may use credit reference and fraud prevention agencies to help us make decisions. If you would like to read the full details of how your data may be used please see our Privacy Policy

Credit decisions and also the prevention of fraud and money laundering
We may use credit reference and fraud prevention agencies to help us make decisions. A short guide to how both we and the credit reference and fraud prevention agencies will use your information is detailed in the leaflet called: A condensed guide to the use of your personal information by HEYCU and at Credit Reference and Fraud Prevention Agencies. If you would like to read the full details of how your data may be used please visit or phone 01482 778753 or ask one of our staff. By confirming your agreement to proceed you are accepting that we may each use your information in this way.


Borrower - The member named on the Loan Agreement

Lender - HEY Credit Union

Loan - the sum that the Lender has advanced to the Borrower, plus interest

Shares - The amount in your savings account(s) with HEY Credit Union.



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© Hull & East Yorkshire Credit Union | Registered under the Credit Union Act 1979 and the Co-operative and Community Benefit Societies Act 2014. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Our FRN is 213620.