Frequently Asked Questions

The amount you can borrow will depend on individual circumstances and the type of loan. We provide loans ranging from £200 to £15,000. The sum you can request will depend on various factors, including:

• Your savings and borrowing history with us
• Your overall credit history
• Your capacity to repay the loan.

All our loans are assessed based on affordability to ensure responsible lending. To confirm your income and expenses, we may request open banking, wage slips and bank statements. This helps us protect our members from potential financial difficulties and maintain the security of the credit union’s funds. By looking beyond credit reports, we aim to offer personalized support and explore all ways to help you achieve your financial goals responsibly.

We aim to complete assessments within 5 working days, though sometimes it can take a little longer. A critical part of our assessment is the income and expenditure form. Please ensure this is completed accurately – we may have to come back to you for clarification on some points. Also, if you have changed address or bank details recently, we will need to verify these as part of the assessment process.

We aim to return benefit payments by 4.00pm on the day your Benefit is received. Often, they will arrive at your bank account by 1.00pm and occasionally they are delayed till 8.00pm. We process Benefit payments early in the mornings of the days we receive them and then send the return payments to your bank.  When delays occur, it’s usually out of our hands.

You can apply for a top-up on completion of 6 months since the loan was issued provided you have paid off at least 30% of the original Loan amount. Top–ups will be assessed in the same way as new loans and are not guaranteed. We always recommend that members clear down one loan before starting a new one. If you are approved for a top-up loan, your locked savings will be released, however we do recommend keeping the funds in your account, so you can build up a savings pot for the future. Locked savings can also be used as a security when applying for a loyalty loan which allows you to borrow 5 times your savings balance.

When you borrow money, you need to pay for the administration of the loan.  This “interest” charge amount is applied each month as you repay the loan and goes towards the running costs of the credit union. Any surplus money we have at the end of the year is reinvested into the development of the credit union and returned to our members as dividends, where possible.

A key factor in deciding to approve any unsecured borrowing is that the member can afford the repayments. That decision is based on the household income and expenditure, which is why we ask for information about a partner’s income.

Any loan with Acorn Community Bank is the responsibility of the individual member. Although we may ask for information about a partner’s income, that is solely to help ensure that the household income can afford the repayments. A member’s partner is NOT liable for loan repayments.

If we ask you to provide payslips, bank statements, or any other documentary evidence for a loan request, you should always supply us with COPIES as we can’t return the documents to the member. When you are making copies of, for example, bank statements, please ensure all the information is legible and that it covers the dates required. If you fail to supply the required information, or details are not clearly visible, it could well delay your application.

At Acorn Community Bank, members benefit from a dividend rather than a set interest rate. This dividend is determined by the profits generated by Acorn throughout the financial year. The board of directors proposes the dividend percentage, which is then approved during the Annual General Meeting (AGM) of Acorn Community Bank. Every member has the right to attend the AGM and cast their vote.

Certainly. Just like all significant financial institutions, we are protected by the Financial Services Compensation Scheme (FSCS). This scheme provides compensation to depositors if an organization cannot fulfil its financial commitments. You can learn more about this scheme here. 

Additionally, we are authorized by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority. This ensures that we adhere to strict trading conditions, submit our financial performance data to regulators every three months, and have our directors and senior staff thoroughly vetted by the regulatory bodies.   

At Acorn Community Bank, we go beyond traditional lending by encouraging our members to save while they borrow. Each time you make a loan repayment, a small amount is set aside towards savings. This practice helps you build a financial cushion for the future. Once your loan is fully repaid, you’ll have a healthy savings pot, offering you greater financial security. Many of our members have successfully grown their savings with this simple yet effective approach.

Please see the below table for the required amount of mandated savings.

Withdrawing your savings is very easy. You can easily withdraw your savings through the Members Area or our mobile app. If you prefer other options, simply contact us by phone at 03030300147 or via email at office@acorncb.co.uk. Please note that during busy times Phone call/email requests can get delayed.

Withdrawal Requests made by 1:00 pm are processed on the same day, with funds transferred immediately to your designated account. Your funds should appear within 24 hours.

Weekend and Holiday Withdrawals: Requests submitted during weekends or holidays will be processed on the next working day.

Please note that if you have an active loan, there may be limits on the amount you can withdraw.

To maintain your membership, you must keep a minimum balance of £1 in your Share1 Regular Savings Account.