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, subject to credit criteria.

Applications for loans are made on a standard loan application form. Loans can be applied for by calling in to our office, by telephone or via the members section of the web site. Our staff will give you any assistance required. Loans will then be considered by a Loans 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 credit union 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 Credit Agreement, which is a legally binding document being a undertaking to repay the loan, and to commit to regular repayments.

We generally require some or all of the following information to accompany Loan Applications i.e.

• Evidence of Income e.g. payslips, accounts etc.
• Three months recent current account bank statements
• Mortgage statement for the past year (where applicable)
• Credit Card statements (where applicable)

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. 10 years is generally the maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the credit union, which will treat the matter professionally and in total confidence. Depending on circumstances, the loan terms may 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. This Credit Union charges interest rates lower than the rates permitted by legislation. View our loan calculator to see how reasonable a credit union loan could be. From time to time Clanmaurice Credit Union Limited also has 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.

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