The granting of loans is always subject to the availability of funds for such purposes.
Interest Rates:From 01/02/2012
| Reg Loan: | 12.00% (APR 12.68%) |
| Special Car Loan: | 7.75% (APR 8.02%) |
| Community Loan | 6% (APR 6.2%) |
| Within Shares Loan | 5% (APR 5.12%) |
Interest is calculated and charged on a daily basis on all loans.
Should the interest rates change in the future all borrowing members will be informed.
When a new loan product is launched i.e. special car loans, it cannot apply to car loans already collected.
Apply for a Loan
A member may complete a loan application in any of the following ways:
* In the office with a member of staff
* With the Credit Committee on Tuesday evenings between 8 & 9pm.
* On – line via the Internet at www.balbriggancreditunion.ie
* By phone on 01-8411348
WHEN A MEMBER’S INDEBTNESS IS GREATER THAN €3,000 THE MEMBER MAY BE ASKED FOR THE FOLLOWING ADDITIONAL INFORMATION.
· Proof of income
· Your last 4 wage slips
· A copy of your last P60
· You may be required to produce partner’s proof of income
· If self employed – the last set of certified accounts
· Proof of expenditure i.e. bank statements, credit card bills, rent book.
THE ABOVE INFORMATION WILL AUTOMATICALLY BE REQUIRED ON ALL LOAN APPLICATIONS FOR €5,000 ABOVE A MEMBERS’S SHARE BALANCE
A member’s record with Balbriggan Credit Union will always be a major consideration in any loan application.
First Loan:
The following criteria will be examined when assessing first loan applications.
· The members income and ability to repay the loan
· Proof of income may be required along with previous borrowing history from other financial institutions.
· Before a second loan application is made, at least 33% of the first loan should be repaid.
Time Limits:
It is policy of this Credit Union that loans should be cleared within 5 years, however the Credit Committee may consider loans for a period greater than 5 years. The repayment term on all re-occurring loans such as Christmas, car tax, car insurance, holidays will be one year.
Loans Within Shares:
When a loan application is made for an amount less than a member’s current savings, this will be paid out on request at an interest rate of 6%.
When a loan is granted that is greater than shares and repaid so as the loans falls below shares, the loan will then be re-scheduled to 6%
Junior Members:
Balbriggan Credit Union may grant a loan to a member who is between 14 & 18 years of age. However, if granted the member’s parent or guardian must indemnify this loan.
Shares as Colateral
Members shares are always held as collateral for a member’s loan. Therefore a withdrawal which would bring members shares below his/her outstanding loan balance cannot be made.
Collection of Loans:
The members must be present to collect their loan as the credit agreement, which is a legally binding contract, must be signed and witnessed in the Credit Union. The loan may be collected in not more than 3 instalments.
Guarantor:
The Credit Committee can insist that a loan will only be granted subject to the member getting a suitable guarantor. A guarantor signs the credit agreement in addition to the borrowing member. In doing so, he/she is promising to repay the outstanding loan balance in the event of a member defaulting on their loan repayments. The Credit Union requires that a guarantor proposal form must be completed and returned to the office for approval before a guaranteed loan can be issued. Before the loan is issued, the guarantor must visit the Credit Union Office in order that the implications of their signature on the credit agreement can be explained to them.
Late Repayments:
It is the policy of this Credit Union that all loans are repaid as per the conditions of the promissory note. If you have any problems making your repayments you should contact the Credit Control Committee immediately as it may affect your ability to borrow in the future.
Only the credit Committee can reject a Loan:
Appeal against non approval of loan
The Credit Committee automatically considers any loan not granted by a loan officer. When the Credit Committee rejects a loan application, the member is entitled to appeal that decision to the Board of Directors. Such appeals are addressed through the Credit Union Manager.
