Restructuring Loans

Restructuring Loan: Sometimes an applicant, though fundamentally creditworthy with regular income and disciplined expenditure, does not meet our affordability test for a new loan because of the burden of existing debt repayments at much higher interest rates. This could relate to a large credit card debt, a high cost personal loan, a payday loan, or even doorstep credit. The common feature is that the high interest rate means that repayments eat up a large share of the applicant’s surplus income.


CMCU’s Restructuring Loan product may help in some of these cases. As a credit union, we lend at a “fair and reasonable rate of interest” as required by the Credit Unions Act. We may be able to offer you a Restructuring Loan of an amount sufficient both to repay all your high-cost debt, and leave you enough extra cash for the new purchases you need.

Restructuring Loans carry a higher rate of interest than our standard car and personal loans, but we discount this rate to 10.5% if the terms and conditions are met (see below) and this rate will be very much lower than the rates on high cost credit. So, less of your regular repayment has to cover interest, and more repays principal, making the overall debt more manageable and affordable. You could even find your regular repayment, on the higher total loan, actually reduces, if you’ve been paying very high interest rates. We can offer Restructuring Loans for up to £15,000 over a period of up to five years.

This loan is for you if:
– you have debts of £15000 or below
– you only pay the minimum due on your credit card on a regular basis and don’t see this changing
– you have to economise on essential items to make your credit repayments
– your repayments are up to date but you are not sure you can maintain this
– the monthly repayments on your total debt come to more than the repayments for the same amount/term in the table below

Loan Value Monthly Repayment (36 Months) Monthly Repayment (48 Months) Monthly Repayment (60 Months)
£4000 £129.07 £101.46 £84.99
£5000 £161.34 £126.82 £106.24
£6000 £193.61 £152.18 £127.49
£7000 £225.48 £177.54 £148.73
£8000 £258.14 £202.91 £169.98
£9000 £290.19 £228.27 £191.23
£10000 £322.34 £253.63 £212.48
£11000 £354.90 £278.99 £215.23
£12000 £387.21 £304.36 £254.55
£13000 £419.21 £329.72 £276.22
£14000 £451.75 £355.08 £297.46
£15000 £484.01 £380.44 £318.71

Since the Restructuring Loan is assessed on the basis that the existing high cost debt is actually repaid from the new loan, the member will be required to provide evidence (e.g. a closing statement) that this has been done. To ensure that existing debt is repaid the new loan will be held in your savings account and released in instalments one or two creditors at a time. We also expect you not to take on significant new consumer debt, but instead to start regular saving – at least £20 a month – with CMCU, in parallel with repaying the loan. If you do not comply with these conditions – that is, if you fail to repay the existing debt, leaving your total debt much higher, and by our tests unaffordable – we will have to treat the loan as high risk, and reserve the right to raise the interest rate to 21% APR to reflect that therefore it will be this rate and not the discounted rate that is stated on your loan agreement.

As with all our loans, if you find, after removing the burden of high cost credit, that you can, and wish to, pay off your Restructuring Loan more quickly, that is fine – there is no extra cost.

A word version of our application form can be downloaded from this page. Once completed (you may need to activate overtype mode in Word for ease of completion) please email it with your most recent one month’s bank statement to Or if you would prefer a PDF of the form is available on our ‘Downloadable Forms’ page. CMCU Loan Application Form – Word Version. We also ask that you provide us with proof of all outstanding credit. There is a template form here.

Contact us today for a quote or more information:

Registered Address

3 Beaufort Buildings, Gloucester, GL1 1XB

Call Us

01452 500 463 (9.30am -2.30)

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