Family Loan

Family Loan


Our ‘Family Loans Scheme’ allows all families/individuals in receipt of child benefit to apply for a loan between £300 up to £600 from the Credit Union.

The loan is conditional upon your child benefit being paid directly to the Credit Union and commit to saving a minimum of £2.50 a week (or £10 a month). This cannot be withdrawn until your loan is repaid in full.

The remainder of your Child Benefit will transferred back to you via a bank transfer. You can decide what happens to the ‘surplus’ amount. It can be paid into your Credit Union Account, withdrawn or split between savings and withdrawal.

Apply today! If you receive Child Benefit for at least one child under 15, then you can apply for a Child Benefit loan of between £300 to £600.

Our Child Benefit loans give you a fairer and much more affordable alternative to high-cost borrowing from payday or doorstep lenders – saving you hundreds of pounds in interest.

To support your application we will perform an affordability calculation to verify the information you have provided to us. The fastest to do this is to give us permission to review your bank statements online, this is called Open Banking.

How to submit your bank statements to us:

The quickest and easiest way to submit your bank statements to us is to use our trusted and regulated partner consents.  Click below to get started.

Online Banking – When asked for a “Membership Number” please use “000”

If you are unable to do this you MUST upload your Bank Statement FOR THE LAST 30 DAYS showing your name, address and Child Benefit Number and something showing your National Insurance number.


Why choose a Family Loan with London Community Credit Union
  • Borrow from £300 up to £600.
  • Use your Child Benefit to repay the loan over 26 to 52 weeks.
  • Build savings whilst you borrow so you have a lump-sum at the end.
  • Simple and quick online application.
  • No hidden fees or early repayment charges.
  • Affordable interest of 42.6% APR.

Example: With weekly CHB of £24 you may apply for a loan of £600 over 52 weeks

  • Annual  Interest rate 36% with APR of 42.6%
  • Weekly payment : £14
  • Locked in savings : £2.50
  • Remaining funds for withdrawal: £7.50
  • This would give you spending power of £600 to cater for the needs of your child.

You can apply at any time. If you receive child benefit, you may be eligible to borrow up to £600 (subject to affordability check)

How do I nominate my Child Benefit to be paid to Credit Union account?

Get in touch with HMRC in one of these ways. Have your National Insurance or Child Benefit number ready. Give them Credit Union account details and make a note of the Child Benefit reference number they give you.

Ways to contact HMRC – Child Benefit:

  1. Online: sign in using Government Gateway to report a change of bank account details
  2. Webchat: Mon – Fri 8am to 6pm, Sat 8am to 4pm
  3. Phone: 0300 200 3100
  4. Post: HM Revenue and Customs – Child Benefit Office, PO Box 1, Newcastle Upon Tyne, NE88 1AA

Quote Credit Union Account details: 

Account Name: London Community Credit Union Ltd

Sort Code: 08-92-50 Account Number: 67008281


HMRC will allocate this using your Child Benefit reference.

Once HMRC has sent us your first Child Benefit payment, we then send your loan funds by BACS to your bank account.

  • Please note, if your Child Benefit is already assigned to LCCU, and you have an outstanding loan you will not be eligible for this Family Loan. However, you may be able to apply for a standard loan. Please visit our loan page to apply.


  • Am I eligible?

    To apply for a Child Benefit Loan you must:

    • Be over 18 years old.
    • Be in receipt of Child Benefit and agree to your Child Benefit being paid directly from HMRC to your credit union account.
    • Have a UK address.
    • Not be bankrupt or involved in an Individual Voluntary Arrangement or Debt Relief Order.
    • Agree to save a minimum of £2.50 a week (or £10 a month) whilst repaying your loan, which cannot be withdrawn until the loan is repaid or topped up.
    • Agree to the credit union securely viewing your recent bank statements using Open Banking.
    • Agree to a credit check being performed as part of your application.

    If you are not already a member of the credit union, your loan application will be considered as an application for membership.

    We assess each application individually, taking into account income, expenditure, credit score/history, and whether we think you can afford the loan repayments. *terms and conditions apply.

  • What information will I need?
    We need you to provide personal information, including your:

    • Name and home address(es) for the last 3 years
    • National Insurance number
    • Child Benefit reference number
    • Bank account details where your Child Benefit is currently paid, and
    • The bank account you use for your day-to-day banking and bills (if different to the bank account your Child Benefit is paid into).
  • Accordion Title 3

    Once you have been notified that your Family Loan application has been approved there are just a couple of simple steps remaining.

    We will send you the loan agreement that you will need to review and electronically sign, along with an Loan Repayment method letter. You will need to contact the HMRC to get your Child Benefit payments redirected to the credit union.

    We will only release your loan funds when the credit union receives your first Child Benefit payment.

  • What happens to my Child Benefit?

    Loan repayments and regular saving contributions will be taken automatically each time your Child Benefit comes into the credit union. The remainder is yours to withdraw or add to your savings.

    If at any point you are having difficulties keeping up with your loan repayments – please contact the credit union to discuss how we can help.