Frequently Asked Questions

Wed, 09/05/2007 - 02:58 — interspeed

Loans FAQ's

What can I get a loan for?

We will consider personal loan applications for almost anything – from debt consolidation, to a new car, a boat or a holiday. Apply online here.

What is the process I need to go through to get a loan?

The first step in the loan process is to fill out our loan application in full - even if you have filled out one before. Once you have done this you need to email, fax or drop it back to one of our branches.

A lending officer will then check the loan application to make sure that we have the relevant information. If we do not have the information we need someone will contact you, asking you to provide further information. We then assess your financial situation, previous credit history and how much security you are offering. If the loan is approved then we will give you a call to make an appointment with one of our lending consultants to sign the loan documents.

Once the documentation has been signed by all parties, we can disburse the funds. We prefer to pay everything by cheque or direct credit, so you will need to bring in any paperwork regarding this to your appointment.

How long will my application take to process?

As long as we have all the information we need from you, the application should only take 24 hours to process. Sometimes applications need to go through to management before they can be approved, and this may take a little longer. We will endeavor to get them done as soon as possible, and contact you once we have made a decision.

What other information will I need to provide with my application?

A checklist of extra information we may need from you can be found on our loan applications, but it depends on the purpose of your loan:

  • If you don’t bank with us, we will need to see your most recent bank statement, but if you are having your wages paid into a First Credit Union account this won't be necessary.
  • If you are using a guarantor as security on your loan, your guarantor will need to fill out a guarantor form and this will need to be attached with your application. (Note: If your loan is approved, your guarantor will also need to come to your appointment).
  • If you are using your loan to consolidate debt, we will need to see proof of the settlement figures. If you are using the loan to pay bills we will need to see the bills.
  • If you are buying a new car, you need to attach a copy of the Vehicle Sale & Purchase Agreement (VSA) or the ‘window card.’ If it is a private sale, you need to fill out and attach one of our Private Sale documents.
  • We also need to see proof of your address (this can be a recent bill or bank statement).

Why is it important that I fill out the application in full, and provide other information?

Most of the information we ask you to provide and fill out in the forms is required by law, and we can not process your loan without it. Before we can make a decision about your application, we need to know as much information as we can to protect both us and yourself from any implications that may arise.

The nature of our business means we must keep your personal details on file, but we take thorough security measures to ensure it is kept safe.

How long will my loan take to pay off?

It depends on how much money you borrow and what your repayments are, but the preferred term for our loans is three years. To get more of an idea about how long it will take you to pay off the amount you had in mind refer to our loans calculator.

How much interest will I pay?

Our interest rates vary depending on the type and amount of security that you are offering. The highest interest rate we charge on personal loans is 18%. To work out how much interest you will be paying back on the amount that you are after, refer to our loans calculator.

What is Loan Protection Insurance?

Loan Protection covers your loan repayments if anything happens to you. Although it is not compulsory, we prefer all loans to be covered by this. 

What is a credit check?

A credit check is an inquiry that First Credit Union can make that shows us your credit payment history. We only do this once we have your consent (this is part of the declaration that you agree to when you sign the loan application or agree to terms and conditions online).

What is security?

We are unable to give loans if the member offers no security. We need security as a way of protecting our interests should you default in anyway.

We accept three forms of security:

  • Vehicles/Boats
    We will accept vehicles as security on the loan as long as they are warranted and registered and the vehicle isn’t used as security anywhere else. We can’t use a vehicle as security on your loan if you are paying it off to any other financial institution.
    If you are applying for a loan for a vehicle, then we would be happy to look at using that vehicle as security for the loan (subject to lending criteria)
    Once we have the vehicle as security on our loan you are unable to sell that vehicle without letting us know, and we will require you to use the funds from the sale of that vehicle to repay your loan with us.
  • Guarantor
    A guarantor is someone that can guarantee that you will and can pay back your loan, and they agree to cover your repayments should you default in anyway. For more information on guarantors, click here.
  • Savings
    We have an account specifically for loans (S6 Loan Provider Account), and we can look at using it as part security (if you have built up enough savings) on the loan.

What is a guarantor and when might I need one?

A guarantor is someone who basically guarantees that you will/can pay. They are agreeing to repay the loan should you default or fail to pay.

You will need a guarantor if:

  • You are on your learners license
  • If you don’t have enough security to cover the loan
  • If you have a few blemishes on your credit check

Who can I get to be my Guarantor?

A guarantor must be over 18yrs of age, be working full time and living in the Waikato or Bay of Plenty area. You can not get them to be a guarantor if they are currently a guarantor for someone else and they must be available to come to the loan appointment if the loan is approved. Members typically choose a family member or close friend to act as guarantor on their loan.

What is a privacy declaration?

You are required to sign and date that you have read and understood the privacy declaration as part of your loan application. It covers what we may do with the information you give to us, your right to have access to that information, and involves you declaring that all information you have provided is true and correct.

What is a loan agreement?

After your loan has been approved you will be asked to sign the loan agreement. There are two copies – one for you to keep, and one for our records. It is a legal document that outlines the terms and conditions of your loan, the security, your contact details and how much your repayments will be and how often. It is legally binding, for both yourself and First Credit Union.

Who can I call or contact if I need help with my application?

If you require help filling out the loan application, you can either come into a branch and see one of our lending officers on the helpdesk, or you can give the our call centre a call on 07 834 4810 Hamilton, 07 578 6255 Tauranga, or 07 884 9543 Te Aroha.

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