First Credit Union Loan-Unemployed?

Sarah316

Hey,i've been saving in the credit union in Beaumont about 5 months or so,have saved up 1500 euros or thereabouts...

im looking to get about 3000E... im currently unemployed and receive 188E from Jobseekers Benefit.

just wondering what the chances are of a loan being granted to me?

also what is the ratio of savings to loan for a first time borrower?

my mother is a member there and has paid back some loans and would go as guarantor with me also.

Thanks for any help!

uck51js9zml2yt

Sarah316 wrote: »

Hey,i've been saving in the credit union in Beaumont about 5 months or so,have saved up 1500 euros or thereabouts...

im looking to get about 3000E... im currently unemployed and receive 188E from Jobseekers Benefit.

just wondering what the chances are of a loan being granted to me?

also what is the ratio of savings to loan for a first time borrower?

my mother is a member there and has paid back some loans and would go as guarantor with me also.

Thanks for any help!

It's normally 1 1/2 times your savings but only your CU can really advise.

unclebill98

Was recently covered.

Lending policies will not allow a loan to someone unemployed, you don't have an income to support an application as your job seekers benefit is to live on and not for serving a loan.

Keep up the good savings habit.

hairyprincess

unclebill98 wrote: »

Was recently covered.

Lending policies will not allow a loan to someone unemployed, you don't have an income to support an application as your job seekers benefit is to live on and not for serving a loan.

Keep up the good savings habit.

Since when? I've had about three or four loans since becoming unemployed. The latest just a few months ago

unclebill98

Well each cu would have different rules but IMHO thats not responsible lending.

hairyprincess

unclebill98 wrote: »

Well each cu would have different rules but IMHO thats not responsible lending.

How is it not responsible? If I was in a minimum wage paying job I wouldn't be earning much more than what I am getting being unemployed. I have proven that I can repay my loans.
It would be prejudicial to refuse a person a loan just on the grounds that they are unemployed

Leo Dowling

unclebill98 wrote: »

Lending policies will not allow a loan to someone unemployed, you don't have an income to support an application as your job seekers benefit is to live on and not for serving a loan.

Which cu told you that?

peteb2

Why would a CU of all places lend money to an unemployed person? Surely the capacity to repay has to come into it.

What do you need 3k for? If you have 1500 in there could you not just save the additional money needed over the next 3 months and then just withdraw the 3k?

coco_lola

That shouldn't be a problem at all. I had only 600 saved and they gave me a loan of 3,800 with my mother as guarantor and a form signed from my job saying I had a permanent job and could make the repayments. I have been making the repayments at 3 times what they should be and adding savings in to show them I am reliable and that way next time I need a loan then I'll get it myself.

peteb2

coco_lola wrote: »

That shouldn't be a problem at all. I had only 600 saved and they gave me a loan of 3,800 with my mother as guarantor and a form signed from my job saying I had a permanent job and could make the repayments. I have been making the repayments at 3 times what they should be and adding savings in to show them I am reliable and that way next time I need a loan then I'll get it myself.

So you didn't read the part where the op said they were unemployed then??

chris85

hairyprincess wrote: »

How is it not responsible? If I was in a minimum wage paying job I wouldn't be earning much more than what I am getting being unemployed. I have proven that I can repay my loans.
It would be prejudicial to refuse a person a loan just on the grounds that they are unemployed

Prejudicial? If someone is currently unemployed they are viewed as a much for defaulting, due to lower income, greater risk of emigration or moving from the area.

Prejudicial is like saying they cant refuse a blind person a driving license. Its logical.

Loans are not purely income based but based on the applicants risk also. Good you got loans and are repaying them but it would not be generally considered responsible lending. The fact you have one and paying it back doesnt change this fact.

Leo Dowling

The distinction isn't being drawn here between what people think credit unions should do and what they actually do. The OP asked if they give loans to people who are out of work and the answer is yes, they do. They'll base your ability to pay on your saving history and what you already have saved. I got several loans from them while I was unemployed and I know a lot of others that have. As is the case with everything else on boards.ie, you can't ask a simple question if it has the word "unemployed" in it or else you'll be subject to a load of anti-dole rabble that doesn't actually provide any facts.

Go ahead and apply for your loan OP and let us know how you get on.

peteb2

Shouts to the crowd: Everybody! Everybody! Don't come onto internet forums!! You may get to hear peoples opinions when you ask a question!!

I'll get my jacket!

chris85

peteb2 wrote: »

Shouts to the crowd: Everybody! Everybody! Don't come onto internet forums!! You may get to hear peoples opinions when you ask a question!!

I'll get my jacket!

True to that. I think I will get my coat also and leave this to the people who only want to hear what they need to hear.

eriko411

Hi,

Each Credit union has difference rules on their loans policy but neither a bank or cu can refuse to loan application because your unemployed.

Both go on your income,out-goings & the cost of living ( which is 140euro last time i checked )

unclebill98

eriko411 wrote: »

neither a bank or cu can refuse to loan application because your unemployed.

yes they can. It's called a lending policy.

Jesus Shaves

unclebill98 wrote: »

yes they can. It's called a lending policy.

No they can't, It's called discrimination.

chris85

darokane wrote: »

No they can't, It's called discrimination.

Yes they can. Employment status is valid.

coco_lola

peteb2 wrote: »

So you didn't read the part where the op said they were unemployed then??

Musta missed that one! Different story then!

Jet Black

The purpose of JSB is provide a person with a cost of living, food and clothes. The credit union shouldn't have accepted it as a means to pay a loan in the first place.

ANXIOUS

It woukd be extremely reckless for any instituion to give a loan on Jsb. If the goverment cut it by 25% in the morning, the first thing not to be paid imo would be the loan.

hairyprincess

Jet Black wrote: »

The purpose of JSB is provide a person with a cost of living, food and clothes.

Says who??

hairyprincess

ANXIOUS wrote: »

It woukd be extremely reckless for any instituion to give a loan on Jsb. If the goverment cut it by 25% in the morning, the first thing not to be paid imo would be the loan.

IMO - that really is the keyword here :rolleyes:

unclebill98

hairyprincess wrote: »

Says who??

The bank whom you are asking to lend you money.

chris85

hairyprincess wrote: »

IMO - that really is the keyword here :rolleyes:

This is an internet forum. Everything is opinion here. So is yours! You can respect it or have a valid argument against the opinion. Otherwise you have not contributed anything.

If a person is on JSB and struggling to pay rent, food, transport, loan etc and it subsequently gets reduced the loan would be victim to natural selection from the list of expenditure to go. I agree with ANXIOUS on that front. Obviously in some case this would not happen but the majority i agree that it would.

hairyprincess

unclebill98 wrote: »

The bank whom you are asking to lend you money.

Do the banks have this stated in their literature somewhere?

chris85

hairyprincess wrote: »

Do the banks have this stated in their literature somewhere?

Their lending criteria change often and does not need to be published but JSB would come down to employment status. If you are not presently employed you wont even make it past first checks for the loan. You may be even told no point in applying.

The intention of JSB is to allow a person a small income to provide basic necessities required to have a basic standard of living in accordance with human rights (Food, shelter, etc). It is not intended to be used for paying debts. However for many people these days unfortunately it is which aint great. This is a problem with the credit boom to bust we had. So much debt and very little money to pay it now.

hairyprincess

chris85 wrote: »

This is an internet forum. Everything is opinion here. So is yours! You can respect it or have a valid argument against the opinion. Otherwise you have not contributed anything.

If a person is on JSB and struggling to pay rent, food, transport, loan etc and it subsequently gets reduced the loan would be victim to natural selection from the list of expenditure to go. I agree with ANXIOUS on that front. Obviously in some case this would not happen but the majority i agree that it would.

I'm sorry, but it's a sweeping statement to make. Nobody know anyones financial position or priorities. It is very, very individual.

For what it's worth, in my own personal experience of three and half years of unemployment have never reneged on my loan repayments

unclebill98

As Chris85 said really.

While some people don't like it, it's the truth.

All lending is subject to lending criteria and t&c. Simple. Each bank has different lending criteria and t&c's and on that note I'll leave the tread.

chris85

hairyprincess wrote: »

I'm sorry, but it's a sweeping statement to make. Nobody know anyones financial position or priorities. It is very, very individual.

For what it's worth, in my own personal experience of three and half years of unemployment have never reneged on my loan repayments

Thats good but you are not the general rule. Its normal on a limited income that the rent, food, other needs would get priority over the loan.

Jet Black

hairyprincess wrote: »

Do the banks have this stated in their literature somewhere?

Not in so many words but it's there.

PTSB

If you are over 18 and living in the Republic of Ireland, all you need for your application is:

proof of income (P60 or current payslip)
proof of ID (passport or driving licence)
proof of address (recent utility bill or bank statement)
you may also need to provide recent bank statements

JSA/JSB is not a source of income.

Ulster Bank

Before agreeing to lend you money the bank will check your ability to repay the loan. This is likely to involve a number of questions about your financial situation including your income, whether you are employed or self employed, the income of your partner, and details of any existing debts or loans.

As above, not a source of income and only says employed or self employed

hairyprincess wrote: »

Says who??

Me. They're not going to stipulate what you have to spend your money on but it's pretty obvious what its suppose to be used for.

Jesus Shaves

Jet Black wrote: »

JSA/JSB is not a source of income.

Really?
Any money you receive into your hands whether it be wages or JSA is a source of income.

jack888

What are you saving for?, a new macbook pro.

This person should be taken off the dole if they can afford to save.

Jet Black

darokane wrote: »

Really?
Any money you receive into your hands whether it be wages or JSA is a source of income.

No JSA is there in order to give a person the basic means to survive, a standard living. Back to school/clothing allowance and child Benefit is not an income either. It's money you receive but is there for a specific purpose.

When banks calculate for a loan they take income from outgoing minus living standard for a person. JSB covers standard of living so the person has no disposable income.

in·come (nkm)
n.
1. The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as profit from financial investments.

hairyprincess

Jet Black wrote: »

No JSA is there in order to give a person the basic means to survive, a standard living. Back to school/clothing allowance and child Benefit is not an income either. It's money you receive but is there for a specific purpose.

When banks calculate for a loan they take income from outgoing minus living standard for a person. JSB covers standard of living so the person has no disposable income.

It depends what your standard of living is! Like everything, it's individual.