£2,000 Loans

Am I eligible for a £2,000 loan?

My Community Finance works with credit unions that provide ethical and affordable loans.

You can apply for a £2,000 loan from one of the credit unions we work with via our website. You’ll need to become a member to borrow from a credit union. Membership criteria can vary between, but the credit unions we work with accept new members from almost every profession and those part of organisations such as the National Trust and the Co-op.

In addition to becoming a member, you’ll need to meet the following eligibility criteria to get a £2,000 loan from one of our partner credit unions;

Be between the ages of 21 and 65
Be employed with an annual income of at least £18,000
Be a resident of the UK (excluding Northern Ireland, the Channel Islands and the Isle of Man)

Finally, you’ll need to pass the creditworthiness and affordability checks that will be completed when you apply.

Will I need a credit check to borrow £2,000?

To be approved for a £2,000 loan from one of the credit unions we work with, you’ll need to pass the relevant affordability and credit checks. These checks will be completed when you apply.

You can see if you are likely to be accepted before applying by requesting a personalised quote here. This uses a soft credit check which does not impact your credit score.

Can I get a £2,000 loan If I have bad credit?

The UK has three leading credit reference agencies - Experian, Equifax and TransUnion. They use information about your borrowing habits to determine your credit score.

Each credit reference agency has a slightly different scoring criteria, but they will all put you into one of four categories; Excellent, Good, Fair or Bad. To borrow £2,000 from one of the credit unions we work with, you’ll need to have a “fair” credit score or better.

It’s a good idea to check your credit score regularly. You can do this for free using websites and apps like Credit Karma, ClearScore and Experian.

If you find you have a bad credit score, and think you’re likely to be turned down for a £2,000 loan, it’s a good idea to try and boost your score before applying. See below ways to improve your score:

Register to vote - being on the electoral roll helps to prove your fixed address
Make sure you pay any bills or credit repayments on time and in full
Remember to check your credit report regularly and ensure that all information is correct and up to date - if you spot any inaccuracies, contact the credit reference agency as soon as possible to get them corrected
Avoid applying for multiple credit products within a short period, as it can give lenders the impression you’re in financial trouble. Try not to make more than two new credit applications within six months.
Aim to keep your credit utilisation below 25%. This is the amount of money you have actually borrowed divided by the total amount you are eligible to borrow e.g. credit card limit.
Don’t use a credit card to withdraw cash - doing so can make lenders think you’re having financial difficulties

What can I use a £2,000 loan for?

You can use a £2,000 loan to spread the cost of a large purchase, like new furniture or a family holiday, or cover unexpected expenses, like car repairs.

You could also use a loan to consolidate high-interest-bearing debts into one, more manageable monthly payment.

How long will it take to repay a £2,000 loan?

The time it takes you to repay your £2,000 loan will depend on the repayment period you choose. When you apply for a loan via our website, we’ll ask you how long you want to take to repay the money.

The credit unions we work with offer £2,000 loans with repayment periods from 12-60 months. When choosing a loan term, it’s essential to consider how it will impact your loan's total and monthly costs.

How much does a £2,000 loan cost?

The cost of a £2,000 loan will be affected by two main things: your repayment period and interest rate.

When you apply for a loan with one of the credit unions we work with, you’ll receive a personalised APR based on your financial circumstances. APR stands for Annual Percentage Rate and shows how much interest you’d pay over a year. The higher your APR, the more you’ll pay in interest and the higher the total cost of your loan.

Your loan term will determine how long interest will be payable on your £2,000 loan for. This means paying off your loan over a longer period of time will likely increase the overall cost (but your monthly payments will be less)

If you want to get an idea of how your loan term will impact both the total and monthly cost of your £2,000 loan, you can use our loan calculator. The loan calculator uses a representative APR, which shows how much a typical borrower will pay. You may pay more or less depending on your individual financial circumstances.

How quickly will I receive a £2,000 loan?

The time it takes to receive a £2,000 loan will vary depending how much of your information can be confirmed automatically when you apply. We use advanced technology to confirm as much as possible, but sometimes our team will need to spend time looking at your application or request additional documents from you.

The credit unions we work with are usually able to get your £2,000 loan to you within four working days of you signing your loan agreement (working days are Monday to Friday excluding bank holidays).

How do I apply for a £2,000 loan?

Our straightforward online form makes applying for a £2,000 loan from one of our credit unions easy. Here’s a step-by-step guide to the application process:

First, you must decide how long it will take to repay your £2,000 loan. The credit unions we work with offer loan terms from 12-60 months.
You’ll then request a personalised quote. To provide you with this, we’ll perform a soft credit check which won’t affect your credit score, and only you’ll be able to see a record of it on your credit report.
If you meet our partner credit unions' initial eligibility criteria, we'll inform you of the APR you’ll be offered on your £2,000 loan. This is valid for 30 days, so you have some time to think about if it’s right for you.
If you want to go ahead with the loan, we’ll perform a hard credit check on your credit report, which other lenders or organisations with access to your credit record can see.
We’ll also send you a loan agreement, along with the terms and conditions of the loan contract. Once you’ve read and are happy with your £2,000 loan terms, you’ll sign your loan agreement.
The credit union will aim to make a decision on your personal loan within two working days of you signing your loan agreement (working days are Monday - Friday excluding bank holidays). If successful, you should receive your £2,000 loan within two working days of it being approved.

Can I make early repayments on a £2,000 loan?

You can make early repayments on a £2,000 loan or pay back the entire balance before the end of your term.

To make early repayments, login to your My Community Finance portal to find the account details to transfer any additional contributions to.

Logging into the portal is also the way to kick off full early repayment of your loan. You’ll need to request an early repayment quote. This will show how much you have to repay and includes any reduction in interest from paying early, along with early repayment fees if they apply.