Credit Union Question

The Witches Cat

Hi.
I had 5000 euro savings in my credit union. I got a loan of 6500 with the 5000 still in my savings account. Will the credit union allow me to just transfer over the 5000 from my savings to pay of most of the loan and then get the rest paid off quickly. Id like to do this rather than keep making weekly payments for the next few years.
Does anyone know if i can do this?
Thanks

Nervous Wreck

Yep.

P. Breathnach

It depends on the particular credit union. Most of them require you to hold savings when you have a loan outstanding - something like €1 savings for €3 borrowings.

They might agree to something like an initial transfer from your savings account of about €4,200, and some further transfers as you progress through your repayment schedule.

I have come across instances where CU managers been reluctant to allow such flexibility, so you might need to be insistent.

how.gareth

Just leave a few Euro in your savings and use the rest to pay a lump sum off the loan. Only negative is your back to square one with your savings and will need to build them back up to get another loan