Police Loans
Explained

Officers and staff borrow in the same ways as everyone else, plus one or two routes open only to the police family. The routes are regulated differently, which changes what protection you have if something goes wrong.

Overdrafts and credit cards are also regulated credit. They suit different needs from a fixed loan, and the cost depends on the product and how you use it: check the provider's own figures.

Three credit unions on the Bank of England's October 2026 list have a police common bond. The two that lend across England and Wales are No1 CopperPot and Serve and Protect; the third is the Scottish Police Credit Union. You must be a member to borrow, though No1 CopperPot lets you apply for membership as part of the loan application.

• No1 CopperPot lists a Member Loan up to £35,000, Consolidation, Commutation, Student Officer (first two years of service, up to £10,000 over up to 60 months), Holiday, 70+, Green, Loyalty (against your savings) and Credit Builder loans, plus Revolving Credit and a Budget Account. It says it assesses overall affordability rather than just your credit score and aims to decide within three working days.
• Serve and Protect lists Personal, Inclusion and Top Up loans, borrowing up to £25,000, with interest on the reducing balance.
• Repayment: by payroll deduction where your force offers it (No1 CopperPot lists 31 forces and agencies), or Direct Debit. Both say there are no early repayment charges.

For how membership, dividends and the rate cap work, read police credit union explained.

Police Mutual's loans page offers No1 CopperPot loans. It says Police Mutual (PMGI Limited) acts as an introducer for Number One Police Credit Union Limited, receives an introduction fee of 2% of the gross loan amount, paid when the loan reaches your bank account, and that the introduction is not regulated by the FCA. The lender, and its terms and checks, are the credit union's.

The page lists the Member Loan (up to £35,000, up to 90 months), Consolidation Loan (up to £25,000) and Commutation Loan (from 24 months before retirement). It says membership needs a Member Account with at least £5 a month, and warns that refinancing debt may mean a higher rate or longer term, so you may pay more interest overall.

Banks, building societies and other lenders offer personal loans to officers on their normal criteria. We found no evidence that being a police officer earns a lower personal loan rate as a matter of course. Lenders price on your credit history, income and the amount and term.

When a lender advertises a representative APR, FCA rules define it as a rate at or below which the lender reasonably expects at least 51% of agreements from that advert to be made. You may be offered more. Ask for your personal APR and the total repayable before you accept, and compare that with a credit union quote for the same amount and term.

Some employers offer apps that let staff draw part of the pay they have already earned before pay day. The FCA's statement on employer salary advance schemes (last updated 13 August 2026) says:

• most schemes fall outside FCA regulation because they do not meet the legal definition of credit;
• operators usually charge a fee for each drawdown, and some newer models are free to employees because the employer pays;
• borrowers do not get the statutory consumer credit protections, providers have no obligation to check affordability, the high-cost short-term credit price cap does not apply, and complaints cannot go to the Financial Ombudsman Service;
• with repeated use, a fixed fee can work out more expensive than the payday loan price cap, and use is not recorded by credit reference agencies.

We did not find any police force in England and Wales offering such a scheme on its official pages. If your force introduces one, the FCA's advice is to check you can still cover your outgoings on pay day, because the advance and fees come out of your next pay.

No1 CopperPot's Commutation Loan lends up to £100,000 or 50% of your commutation entitlement, whichever is lower, and Police Mutual's page says it is available from 24 months before retirement. The loan is repaid from the lump sum when you retire.

This table is arithmetic, not a quote from any lender. It shows a £5,000 loan repaid in equal monthly payments over 36 months at four APRs, the last being the credit union legal maximum of 3% a month.

The same amount over the same term can cost several times as much in interest depending on the rate. A longer term lowers the monthly payment but usually raises the total repaid. To see what a repayment leaves from your take-home pay, use the police salary calculator.

• APR includes interest and compulsory fees, expressed as a yearly rate, so it is the best single number for comparing loans of the same amount and term.
• Representative APR is the advertised rate at least 51% of borrowers from the advert are expected to get; yours may be higher.
• Total amount repayable is what you will actually pay. Compare this across offers.
• Early repayment: check whether there is a charge. No1 CopperPot and Serve and Protect say there is not.

1. Is the lender on the FCA register under the name and website it is using?
2. What APR am I being offered (not the advertised one), and what is the total repayable?
3. What is the monthly payment, and what does it leave from my take-home pay in a month with no overtime?
4. Is there a charge for repaying early or overpaying?
5. Will it be paid by payroll deduction or Direct Debit, and what happens if my pay drops or I move force?
6. If an introducer is involved, what fee is paid, and could I apply directly?
7. Am I borrowing against a future lump sum, and have I checked the figure with my pension administrator?

PolicePay is not a lender or broker and is not paid by any lender. This page is not financial advice.