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 does not 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
- On – line click here
- By phone on 01-8411348
- Proof of income(payslips or a salary certificate)
- Your last 4 wage slips
- A copy of your last P60
- 3 months bank statements
- 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 following criteria will be examined when assessing new loan applications.
- The members income and ability to repay the loan.
- A member’s record with Balbriggan Credit Union will also be a major consideration in any loan application.
- The documents outlined above.
- Before a second loan application is made, at least 33% of the first loan should be repaid.
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 5%. 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 5%
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.
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. Before the loan is issued, the guarantor must contact the Credit Union, to grant consent to a credit check and give consent to gurantee the loan.
It is the policy of this Credit Union that all loans are repaid as per the conditions of the Credit Agreement. 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.
Appeal against non-approval of loanOnly the credit Committee can reject a Loan:. 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.