Loans
Loan Applications
The Credit Union will consider loan applications from members for any worthwhile purpose. Each application is treated 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 via the members section of the web site. Our staff will give you any assistance required. Loans will then be considered by a Loan Officer, or will go to the weekly Credit Committee meeting.
What you need when applying for a loan
In deciding whether or not to grant the loan the loan officer or credit committee will take into account the members record of savings and loan repayments, as well as ability to repay -3 payslips / social welfare slips, three months bank statements , mortgage statement if applicable and personal loan statements if applicable are required. Once the loan is granted the member will be asked to complete a promissory note, which is a legally binding document being a promise 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. The member will be advised on the best repayment plan to meet their own circumstances. Members are generally advised to repay a loan in as short a time as possible. 3 years is currently the maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to Therese Conway our Credit Control Manager or any member of management or staff, 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. The Credit Union is currently offering competitive rates. View our loan calculator to see how reasonable a credit union loan could be. We also have regular promotional rates of interest. 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.
Member Benefits
There are many benefits to borrowing from Cavan Credit Union:
- Low interest rates for loans, interest 10.5%
- We don't Charge any processing or documentation fees
- Free loan protection insurance - your loan is paid off in the event of your death. *Terms and conditions apply
- No penalties for paying off your loan early
- Easy application process and speedy decisions
- You as a member, benefit from any surplus that we make by way of a yearly dividend
- You get money back on your interest paid if a loan interest rebate is applied
- You pay the interest on the reducing balance of the loan: therefore you pay less interest as the loan decreases!
NOTE**Terms and conditions apply for all the above loans.
Information Leaflet
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