Commutation Loans

This loan is for you if:


  • you work for an employer (see the list below) who will send us the loan repayment direct from your salary or stipend AND
  • you are a member of their defined benefit occupational pension scheme that includes a lump sum (known as a commutation)
  • you are intending to retire within the next three years
  • you looking for a personal loan between £5,000 and £20,000
  • the interest only repayments will result in the loan being more affordable
Loan Value Monthly Interest Only Repayment
£5000 £33.20
£7000 £46.40
£8000 £49.60
£9000 £55.80
£10000 £62.00
£12500 £77.50
£15000 £93.00
£20000 £124.00


Click for Loan Application Form




We will also need you to send in your most recent bank statement showing at least one month’s transactions and proof of your income, if you regularly use more than one bank account please provide statements for those accounts, too. We will also need to see a copy of your most recent annual defined benefits pension statement.


Most online banking provides the facility to download bank statements as a PDF or a CSV file and these can be sent to us as an email attachment. If you usually receive paper statements these can be scanned or if you use a smart phone photographed and sent as an email attachment to

If you would prefer not to email bank statements, you may submit them by post to CMCU, 3 Beaufort Buildings, Spa Road, Gloucester, GL1 1XB but this may cause a slight delay to your application.

The following employers are currently part of the payroll deduction scheme:

  • Methodist Connexion
  • Methodist Ministers
  • Church of England Church Commissioners
  • Church of England NCIs
  • Church of England Pensions Board
  • Church of Scotland
  • Crossreach
  • Church in Wales
  • Diocese of Oxford
  • Diocese of Salisbury MAT
  • United Reformed Church
  • RC Diocese of Westminster


Revd. Y purchased a house 10 years ago in preparation for his retirement. The mortgage repayments are £900 per month as the mortgage was only given over 13 years as he is due to retire in 2020. These repayments are steep but manageable because both Revd Y and his wife are working and have no other major financial commitments. Unfortunately, the house requires some electrical work and new doors and windows in the next few months at a cost of £10,000. A standard loan for this amount would require them to find repayments in the region of £300 which would be difficult, however a Commutation Loan would cost £62 per month. As Revd Y has been a member of the pension scheme for 30 years he will receive a lump sum which is more than sufficient to repay the principal on the loan. Therefore they are able to improve the house prior to retirement without struggling through the last three years of employment.


The loan is given on an interest only repayment plan with the agreement between the parties that the principal (that is the amount of the loan) will be repaid in full on the retirement of the borrower (or three years from the date of the agreement whichever is the sooner date). The loan will usually be repaid from the “commutation” i.e. lump sum element of the pension. Like all CMCU’s loans, there are no penalties for early settlement. If during the three year period you decide to defer your retirement you can change the agreement to repay the principal but this would be at the credit union’s standard lending rate for the amount at the time.

Registered Address

3 Beaufort Buildings, Gloucester, GL1 1XB

Call Us

01452 500 463 (9.30am -1.30pm)

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.