Over the next few weeks, we are going to look at the various Loan options available to members of the Donegal Town Credit Union – make sure to catch our blog on Student Loans in the coming days, very fitting as we approach mid-June, sweltering weather and the Leaving Certificate looming in the horizon!!
There are a few pre-requisites before securing a loan from Donegal Town Credit Union;
- You must be a Member (either working or living in our Common Bond Area)
- You must be able to produce documentation i.e. Photo Id, Proof of Address, Proof of PPS and Proof of Income
- There is a myth that a borrower must have a least half savings against your loan which is a myth…… you will be advised by Loans Officer of the amount needed to secure a loan.
All loans are personal loans as there is a contractual agreement between you, the Member and the Credit Union – what is different are perhaps the repayment terms, duration of loan or interest rates. When comparing and measuring differences for repayments, it is important to ‘compare apples with apples’, hence the need to find the APR% (Annual Percentage Rate) for each product. APR% rate is the value that includes all additional charges i.e. setup charges, insurance and by law, all lenders must display this under the Consumer Credit Act 1995. Our rate for a personal loan is 12.68% APR. The Member may receive an interest rebate on the value of all interest paid for the year. One of the many benefits of a CU loan is that as your principal reduces so to will the interest paid as opposed to a fixed interest payment for the duration of the loan. Personal loans can also be paid early without penalty and every loan at the Credit Union is insured so that a loan obligation does not fall to another family member in event of death.
“For a €1000, 1-year variable loan with weekly repayments of €20.43 and an interest rate of 12.68%, the total repayments would be €1061.95”
Donegal Town Credit Union members can borrow against their current savings with a ‘share secured loan’ meaning that their shares will be frozen against the new loan amount. We offer a very competitive rate of 6.18%APR, however there are no rebates payable on this loan type. Many Members find it more beneficial to repay a loan rather than replace savings.
“For a €3,000, 1-year variable rate loan with an interest rate of 6%(APR), an annual percentage rate of 6.18%, the weekly repayment will be €59.48 and the total amount repayable will be €3,092.47”
Express Loans are as you would expect, quick and easy! The loan amount that you can borrow via our Express Loans scheme is up to €1000. No savings are required and we provide same day approval assuming all documentary requirements are met on the day.
“For a €1,000, 1-year variable rate loan with an interest rate of 11.94%(APR), an annual percentage rate of 12.68%, the weekly repayment will be €20.43 and the total amount repayable will be €1061.95”
Loans over €40K
Donegal Town Credit Union also offers a competitive rate on amounts over €40K, this loan type will primarily be used by Members who are doing large home renovations, or for Commercial enterprises. This loan type carries an APR rate of 8.31% with no rebate payable. Commercial Loans will require details of proposed enterprise, documentary details can be provided by any of our Loans Officers.
“For a €40,000, 5 variable rate loan with an interest rate of 8%(APR), an annual percentage rate of 8.33%, the weekly repayment will be €186.66 and the total amount repayable will be €48,531.49”.
Loans are subject to approval. Terms and conditions apply. If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating which may limit your ability to access credit in the future.
€€€Money Fact of the week€€: Average APR on a credit card is between 18.9%-20%!