Cavan Credit Union

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Loans

***IMPORTANT NOTICE***

Max loan balance €15,000. Members can only apply on-line for a maximum of €1000 providing they have no loan balance. All other applications are appointment only now, members need to be aware that there can be a four week wait for both loan appointment and loan issue.

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. 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. 5 years is currently the maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to Lorraine Tighe ( Debt Settlement & Control Co-ordinator) 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.

Secure Home Loan

Home owners are eligible to avail of this loan which attracts a 5% p.a interest rate.
To avail of this loan members must produce relevant documentation to show their home ownership e.g. mortgage statement, deeds, solicitor undertaking etc.

A charge in favour of Cavan Credit Union on the property will be taken and held as collateral for these Secure Home Loans. This will be taken after the initial charge already registered in favour of the existing mortgagor. This will cost the member a once off payment of €750. These loans can be repaid over a maximum period of 10 years.

A Secure Home Loan of €25,000 will cost €108.69 per week inclusive of interest with free life cover.

Special Annual Loan

This loan is suitable to members who require a loan for :
Christmas, Holidays, Car Insurance, Medical/Dental Expenses etc. This new product offers a rate of 7%p.a. but must be repaid within 12 months.
A limit of €10,000 applies to this rate in any one year.
A facility is in place to operate this loan separate to any existing loans and can be repaid weekly, fortnightly or monthly by standing order via bank account or transacted in the offices.

Family Holiday costing €10,000 will cost €200 weekly inclusive of interest with free life insurance attached.

Member Benefits

There are many benefits to borrowing from Cavan Credit Union:

Low interest rates for loans, interest as low as 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!

Information Leaflets

NOTE**Terms and conditions apply for all the above loans.

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