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Loans Child Benefit Loan

Child Benefit Loan

To be entitled to apply for a Child Benefit Loan you must be prepared to redirect the HMRC payments to your Share Account with BERKSHIRE CREDIT UNION.

How much can you borrow?

  • Either £250 or £500

What are the terms available?

  • Interest charged at 3% per month (APR 42.6%).
  • Period of loan is over 24 weeks for £250 and 48 weeks for £500.
  • Repayment automatically deducted by BERKSHIRE CREDIT UNION from your weekly or 4 weekly HRMC payment onto your share account.
  • See chart below for repayments etc.
  • Top up loans available after on time receipt of 3 repayments.

What additional benefits are included?

  • No set up or administration charges.
  • No penalties for early repayment.
  • Free life assurance on the loan up to the age of 70
  • Upon full repayment of loan, will lead to entitlement to apply for larger and lower costs loans e.g. Member Reward Loan.

What are the requirements?

You must have:

  • Adult membership of BERKSHIRE CREDIT UNION.
  • No outstanding BERKSHIRE CREDIT UNION standard or member reward loan.
  • No active IVAs, CCJ, or other negative credit impairments.
  • Sufficient regular income to afford the repayments.
  • UK/EU citizenship or right of UK residency.

Do any special conditions apply?

  • You will have to continue to save £10 per 4 weeks while the loan is outstanding which can only be withdrawn at the end of the loan. Any surplus funds may be withdrawn.
  • The first £10 of mandatory savings will be treated as the initial savings required for new members.
  • Children for which the benefit is paid must be aged 16 or under.
  • Payment of the loan will be made after the receipt of the first HMRC child benefit remittance to BERKSHIRE CREDIT UNION.
  • For more information about redirecting your child benefit, please visit:

How do you apply?

  • Complete a simple application form and supply the most recent
  • Payslip or benefit statement
  • Documentation proof of your Child Benefit reference number
  • Bank statement of all current and savings accounts held.

Apply now Click to DownloadDownload Child Benefit Loan Application Form (604.2kb)

Once you have completed the application form you should return it to us:

  • In person, at one of our contact points.
  • By post, to the address listed here
  • Or by email, to:

How long will it take?

The credit committee will make their decision within 3 working days of a fully completed application and will notify the applicant by email.

Example of what would be paid

Loan amount £250 £500
Term 24 weeks 48 weeks
Total interest charged for loan £24.68 £94.00
4 weekly repayment £45.78 £49.50
Mandatory savings non withdrawable every 4 weeks £10.00 £10.00
Total deductions from benefit £55.78 £59.50
Minimum Child Benefit ( ie for one child) from HMRC £82.80 £82.80
Surplus still available for member to withdraw £27.02 £23.30

Remember it could even cost less if you decide to repay the loan earlier with no penalty charge.

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Opening Hours:

Mon - Fri10:00am - 14:00pm

Visit Us:


62 Portman Road, Reading, RG30 1EA


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Berkshire Credit Union is the trading name of Community Savings & Loans (Berkshire Credit Union) Ltd Authorised and Regulated by the Financial Conduct Authority and the Prudential Regulation Autority - Firm no 457045