Credit union loan

mike123123

What's the max you can borrow from a credit union

Luna84

I have no idea but you posted this in the wrong forum.

The Hill Billy

2½ to 3 times what you have in shares usually.

Its about ability to repay and having a history with them. I got 70k with 6k shares.

phormium

There is no answer to that as they are all different, you'll have to check in whichever one you are a member of. Some limit it to multiples of savings, others do mortgages so big variation in amounts.

The Hill Billy

No doubt you had some other collateral, a guarantor, whatever... Or that credit union has very dodgy lending criteria that the LCU or CBI would not be happy with.

One way or another - general rule is 2½-3 times the shares you hold (in my experience). @mike123123 - I hope that helps.

The Hill Billy

Maybe my credit union is old school. Seems like things have changed out there.

Ted222

I’ve been with a credit union for 30 years and they still ask for bank statements and mortgage statements before approving a loan application

Shield

Mod: Moved from Feedback to Banking & Insurance & Pensions below:

https://www.boards.ie/categories/banking-insurance-pensions

-Shield

RoboRat

Depends on the Credit Union. Most of them operate in the same way as a bank and the 2 to 2.5 times what you saved is obsolete. You can borrow what you can afford to repay and you don't need to have savings with them.

Most of them offer a covered loan which allows you to borrow up to the amount you have saved, and as such, the rate is usually very good because it's a secured loan. I think this is where the confusion around shares arises. All other loans are unsecured as per a bank loan, but you will need to provide statements etc - you have to do this with a bank loan but because many people borrow from where they normally bank, they don't need to provide them as the bank already has the info.

I don't understand. I got a loan with AIB a few years ago, had little savings with them and no request for statements of other savings accounts. Loan was about 10 times what I had with them. No collateral, no guarantor, salary was paid into the current account with them.

If your salary is being paid into a current account with them, they have the info they need regarding your repayment ability. If you went to another financial institution to borrow, you would need to provide statements to prove repayment ability.

I know at my Credit Union, you can join and borrow at the same time - no savings needed. They do loans up to €100k and most of the rates are better than the local bank. Personally, I would much rather deal with my local Credit Union.

RoboRat

Apologies, I picked you up wrong then.

Agreed, nothing dodgy about it. Credit unions have been given more scope to go head to head with the banks by the department of finance and the central bank.

The main difference is they don't go to market to lend, they use their members savings so they're not tied to the ECB rates. That's why many are offering very good value loans compared to the banks in the current climate.

I have a loan with my local and the rate is 5.5%. This was far better than my bank and I'm going to switch over to them because they're far easier to deal with.