First Credit Union loan

HL2

I Have been saving in the credit Union for about 13/14weeks now and have saved €1100 so far, I am looking for a loan of about €4000, would this be an acceptable amount to apply for? I know each credit union is different but id just want to get an idea if i would have a chance of getting it?

Thanks

Ponster

Mod edit : Moved to Banking & Insurance & Pensions

tommy21

HL2 wrote: »

I Have been saving in the credit Union for about 13/14weeks now and have saved €1100 so far, I am looking for a loan of about €4000, would this be an acceptable amount to apply for? I know each credit union is different but id just want to get an idea if i would have a chance of getting it?

Thanks

As far as I know the general rule on first loan is 1.5-2 times your current savings. Once you can demonstrate that you can pay a loan back on time and in full, then amount goes up. If you can afford to wait a little bit, I would advise to borrow perhaps 300 or 400 euro and then pay this back over perhaps 6 weeks.

HL2

Thanks Tommy, i cant really afford to wait i would be looking to apply within the next couple of weeks.

tommy21

HL2 wrote: »

Thanks Tommy, i cant really afford to wait i would be looking to apply within the next couple of weeks.

Unfortunately I'd say you won't get it, it would be unheard of for someone with such a short history with a credit union to get 4 times the amount saved. Is any other family member joined there that could act as guarantor?

hobochris

It depends on the credit union, I enquired about my first loan, and was told they will loan at a 4/1 ratio. The figure I am looking for is 7k, the girl I was speaking to didn't think there would be any issue being approved.

HL2

My Family would have there accounts in a different branch but i do know people within my branch that have been there for years that would act as guarantor.

romah

HL2

Credit Union lending is a little more that just the ratio to your savings.

The credit union will also look at your ability to repay the loan , your employment prospects , other credit history even.

you said that you have €1100 saved in 13 weeks...is this sustainable ??

Can you keep up paying the credit union say €100 each week into the future

HL2

Hi Romah

I would have a good Credit History and could continue paying €100 p.w, my employment prospects would also be good considering the nature of my business..

dlambirl

Without a guarantor who has shares in the branch you are applying for, I would say you would probably get declined as it would be alot for your first loan with them. But as its been said, every credit union is different and looks at your ability to pay along with other things.

The only thing you can do to find out if you will get it or not is to go in and talk to your credit union and apply.

HL2

Hi

Just a quick update i got approved for the loan yesterday Without a guarantor and for €5000