Ministry Specific Loans

Get a loan from Churches Mutual to cover unexpected costs, to replace your car or to improve your home.

At Churches Mutual we are ideally placed to help those in ministry because we have an excellent understanding of the financial products that people in ministry need.  We understand that certain stages of life have very specific needs.  For this reason, we offer two products specifically designed for you, one suitable if you are about to enter into stipendiary ministry and the other for when you are approaching retirement.

First Post Loan – Available up to four months before starting stipendiary ministry, repayments begin once your stipend begins

Pre-Retirement Loans – Interest only loans available up to three years before retirement, repayable in full from your pension lump sum.

First Post Loan

Is this loan for me?

This loan is for you if:

  • you are due to commence your first stipendiary post (e.g. curacy, first charge, probationer) in the next three to four months
  • you have significant expenditure to make before you start your new post
  • your present income is insufficient to apply for a personal loan from Churches Mutual or elsewhere
  • your new post is with a denomination (see below) who will send us the repayment direct from your stipend

Before you apply

The First Post Loan is designed for members (and those eligible for membership) who are about to finish training, to apply for a payroll deduction loan (usually for a car but we also accept applications for smaller items such as a course of driving lessons, furniture or a holiday) up to four months BEFORE the first payment of salary or stipend is due.

Funds are made available to you immediately the application is approved, usually within one week of our receiving the application form and all supporting information, but you will not start actual repayments until you receive your first payment of salary or stipend, although interest will of course accrue in the meantime.

First Post Loans are available if you are taking a stipendiary post within the following denominations:

  • The Methodist Church of Great Britain
  • The Church in Wales
  • The Church of England
  • The Church of Scotland
  • The United Reformed Church

In order to assess your application, we will also need:

  • Confirmation of your new post (letter/email from training incumbent, DDO, District Stationing Officer, Synod Moderator, Presbytery Clerk or similar) and your permission to contact them.
  • Proof of your new address if not included in above
  • The date your new appointment will commence

Remember – Non-Stipendiary or Self-Supporting Ministers may apply for a personal loan from Churches Mutual at any time.

Commutation Loan (a loan for pre-retirement purposes)

Is this loan for me?

This loan is for you if:

  • you work for an employer (see 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 are looking for a personal loan between £5,000 and £50,000 (the loan amount should not exceed 85% of your predicted pension lump sum)
  • the interest-only repayments will result in the loan being more affordable

How much does it cost?

Repayments are of the interest only. As a rule of thumb, the interest is approximately £32 per £5,000 borrowed per month. For example, the repayment for a £10,000 loan would be no more than £64 per month (2x£32), while the repayment for a £50,000 loan would be no more than £320 per month (10x£32).


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 since he is due to retire in 2025.

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 a month which would be difficult.  However, a Commutation Loan would cost £64 per month.

As Revd Y has been a member of the pension scheme for 30 years he will receive a lump sum upon retirement 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.

Before you apply

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. the lump sum element of the pension. Like all Churches Mutual’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.

A list of employers currently part of the payroll deduction scheme can be found here

Get in touch

For Ministry Specific Loans Enquiries please fill in the form below. Or call us on 01452 930 360

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Why Churches Mutual?

Our members borrow money with us because we offer some key benefits compared with most other providers.

Competitive – compare our personal loan rate to other similar products
Manageable – affordable repayments and clear start and end dates
Convenient – repayment direct from your salary or bank
Unambiguous – our advertised rate is what we lend at

David's Story

I first joined Churches Mutual credit
union in May 2018.

I have found them to be an excellent organisation, with polite, helpful, accessible staff. I have been impressed by the way they “have gone the extra mile" to support me during difficult financial circumstances with humanity and understanding.

I was unable to obtain a loan elsewhere, but Churches Mutual took me on board and enabled the purchase of a much-needed car. Their willingness to reduce the repayments when I was unable to meet them and then gradually increase them when I could said everything about the ethical standards of this organisation.

I have already made a commitment – which I am fulfilling – to save with Churches Mutual to help support clergy or church workers who need a loan.

If you are looking for ethical, mutually supportive finance, I have no hesitation in recommending Churches Mutual.

David Standen

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