more services and better value for our members
Providing loans to Members on competitive terms is one of the main purposes of a Credit Union. It is the way in which the pool of members' savings is used for the advantage of other members who need access to funds. As the members who borrow pay interest for the use of the money – everyone benefits.
Because we are a Not-For-Profit co-operative our lending policies and procedures are designed to grant loans on the best possible terms. These include:
Many people, both Members and Non-Members, have certain misconceptions about our loans and we would like to clarify the following statements that we have heard:
| Credit Union loans are hard to get. | No. Where a member can show us that they are both able, and willing, to repay the loan, we can generally approve their request. |
| Loans applications take a long time to process. | No. In general most loans are approved within 24 hours. |
| Credit Union loans are dearer than bank loans. | No. While interest rates can vary significantly, we have found that our interest rates are lower than most similar loans available elsewhere. In our last survey (DEC 09) we compared the cost of our loans against a sample of loans listed on the Financial Regulator's website (itsyourmoney.ie) and found that, on average, we were 30% cheaper! |
| You can only borrow twice, or three times, your shares. | No. We base our lending decisions on our estimate of the risk associated with each loan. Where a member has significant savings this reduces the risk, but it is only one of the factors that we take into account. |
Our current loan product range is as follows:
| Rate | Allowable Purpose | Rate per Month | Typical APR | Interest per €1000 |
|---|---|---|---|---|
| Standard | All purposes with facility to “top-up”. | .8% | 10.0% | €1.84 |
| Standard -1 | House Improvements / House Purchase and Cars between €10,000 and €30,000 | .7% | 8.7% | €1.61 |
| Standard -2 | House Improvements / House Purchase between €30,000 and €50,000 | .6% | 7.4% | €1.38 |
| Standard -3 | Education, Training, Nest Egg Loans (see note below) & Community Development | .5% | 6.2% | €1.15 |
Note: Nest Egg Loans are loans fully secured by savings in a 3 year (medium term) or 5 year (long term) deposit account.
For more information on these products please enquire at the offices or pick up an information leaflet.