The loan interest rates in Portarlington Credit Union are:
|Standard Loan||8.9%||9.3% APR|
|Personal Micro Credit Loan||8.9%||9.3% APR|
|House Loan (up to €75,000 net of shares)||5.95%||6.2% APR|
|Commercial Loan||8.9%||9.3% APR|
|Student Loan||5.95%||6.2% APR|
|Secured Loan (loan within shares)||5.95%||6.2% APR|
|Community Loan||5.95%||6.2% APR|
Thanks to the loyalty of our savers, we have plenty of funds available to lend. This credit union will consider loan applications up to a maximum of €75,000 (net of shares) in the case of a house loan and a maximum of €60,000 (net of shares) for all other loans. The credit union treats each loan application in the utmost confidence and will be considered on its own merits. It is credit union policy to meet the borrowing requirements of as many members as possible, depending on the available funds. Applications for loans are made on a standard loan application form. Loans can be applied for by calling to our office or by telephone. Our staff will give you any assistance required. Loans will then be considered by a Loan Officer or Credit Committee.
The Standard Loan Rate of 8.9% (9.3% APR) is available for a range of purposes including, but not limited to:
- Home improvements;
- New furniture or appliances;
- Christmas expenses;
- Family occasions e.g. Weddings, Communions, Confirmations etc.;
- Annual insurance costs.
The Personal Micro Credit (PMC) Loan Rate of 8.9% (9.3% APR) is a special scheme available to members or potential members who are over 18 years of age and in receipt of a social welfare scheme payment. This is particularly relevant to those currently using licensed or unlicensed moneylenders. There are specific terms and conditions for a PMC loan which are best explained by speaking to one of our loans officers. However, some key features are as follows:
- The minimum loan is €100;
- The maximum loan is €500;
- The minimum loan term is 1 month;
- The maximum loan term is 24 months;
- No security will be required;
- Repayment will be through a Household Budget Account (HB);
- Ability to repay will be established by either two consecutive social welfare receipts from the previous month showing the amount paid and any HB deductions in place;
- Repayment via An Post will require a completed and signed HB form;
- Repayment by Electronic Fund Transfer (EFT) from a credit union account will be confirmed from appropriate credit union records and a completed and signed direct debit/standing order form;
- Repayment by EFT from a bank account will require two recent bank statements and a completed and signed direct debit/standing order form;
- Repayment frequency will be in line with social welfare payments.
The House Loan Rate of 5.95% (6.2% APR) is available for loans made to a member secured by property to allow a member to:
- have a house constructed on the property as their principal residence;
- improve or renovate a house on the property that is already used as their principal residence;
- buy a house that is already constructed on the property for use as their principal residence, or
- refinance a loan previously provided for one of the purposes specified in a), b) or c) for the same purpose.
The Commercial Loan Rate of 8.9% (9.3% APR) is available for loans to fund an activity whose purpose is to make a profit. In general, on receipt of appropriate supporting documentation (see link for examples), we will consider commercial loan applications up to €60,000 net of shares. For new business loans in particular, the maximum we will consider is €20,000.
The Student Loan Rate of 5.95% (6.2% APR) is available for those:
- Going back to school/college to get that qualification you always wanted;
- Going to college after Leaving Cert.
The Secured Loan Rate of 5.95% (6.2% APR) is offered as a reward to those who have saved with us on a regular basis and whose loan is therefore matched by shares. It can be used for any of the purposes listed above.
The Community Loan Rate of 5.95% (6.2% APR) is offered to encourage clubs and societies to invest in their associations for the betterment of its membership.
REMEMBER – THERE ARE NO HIDDEN CHARGES OR PENALTIES FOR EARLY REPAYMENT OF LOANS
What you need when applying for a loan
To apply for a loan, all members must fully complete a loan application form with one of our loan officers and submit the required documentation for processing.
The following information must be submitted with your application:
For employed persons:
- 3 recent payslips AND
- 3 Months recent Bank Statements.
For self employed persons ANY TWO of the following will be acceptable:
- a recent Revenue Commissioners Income Tax Assessment;
- a bank statement showing sufficient lodgments to show that your business is ongoing;
- a letter from your accountant confirming your current income;
- the most recent set of audited accounts.
For members on Social Welfare or Fas Scheme EITHER:
- A bank statement showing receipt of your income or
- The Social Welfare or FAS documentation evidencing the payment.
Each application is treated in total confidence and will be considered on its own merits.
In deciding whether or not to grant the loan, the loan officer or credit committee will take into account your ability to repay as well as your record of savings and loan repayments with the credit union. If the loan is approved, you will be asked to complete a loan agreement, which is a legally binding document agreeing to repay the loan and to commit to regular repayments.
Remember – only members are eligible to receive loans from your credit union.
Planning and managing repayments
Credit unions are flexible with regard to repayment plans, though there are some legal limitations to length and amount of loans. We will work with you to devise the best repayment plan to meet your own circumstances. Members are generally advised to repay a loan in as short a time as possible, usually 5 years, but this will depend on the purpose of the loan, e.g. annual expenses such as car insurance should be repaid within the year. To assist you to meet your regular repayments on time, we would recommend that you set up your repayments by standing order or direct debit. Should you experience difficulties in meeting repayment commitments, you should immediately explain the situation to the credit union credit control officer, who will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan will be renegotiated if possible. There are no penalties associated with clearing your loan quicker than agreed.
Interest on credit union loans
By law credit unions cannot charge any more than 1% per month on the reducing balance of a loan. This represents an interest rate of 12.68% APR (Annual Percentage Rate). Credit unions do not charge fees or transaction charges in relation to savings or loan processing. The credit union is currently offering competitive rates. View our loan calculator to see how reasonable a credit union loan could be. Since the interest is charged only on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned.