Flexible Loans at Competitive Rates
What makes our loans different?
Loan enquiries and applications can be made during office hours and are granted at the discretion of the Credit Committee. We provide loans for many purposes to our members. Student loans are also available at an interest rate of 6%. Contact Donegal Town Credit Union for more information on loan applications or becoming a member. Credit Union loans are preferred to other forms of loans because:
There are no hidden fees or transaction charges
Repayments are calculated on the reducing balance of your loan which means smaller interest payments as your loan decreases
Repayment terms are determined to a members circumstances
Loans can be repaid early without penalties
Loans are insured at no extra cost to the member
Our rate for personal loans is 12.68% APR. ”For a €1,000, 1 year variable loan with weekly repayments of €20.43 and a interest rate of 12.68%, the total repayments will be €1061.95″
Donegal Town Credit Union LTD is regulated by the Central Bank of Ireland.
Why take a loan, rather than withdraw shares?
Sam and Jim are both married men with young families, they are both regular saverswithe the Credit Union and each has €1,000.00 in shares. They need to get some furniture for the family home.
Sam withdraws €1000.00 from his shares to buy furniture.
Sam saves €125.02 in interest over a period of two years.
Sam loses €40.00 dividend over the two years on his€1,000.00 (if the Credit Union pays 2% dividend).
By taking out all his savings he becomes discouraged and does not try to save again as he feels he would never reach €1,000.00 again.
After two years he has no savings and has lost the good habit of saving.
SAM DIES SUDDENLY
Sam withdrew €1,000.00 from the Credit Union to buy the furniture and then he died suddenly.
His family have the furniture paid for but there are no savings and no insurance cover for his family.
Jim decided to take a loan of €1,000.00 from the Credit Union.
Jim agrees to pay the loan back over 2 years so the interest charges amount to €125.02.
Jim still has €1,000.00 in shares which will ay him €40.00 dividend over the 2 years of his loan (if the Credit Union pays 2%).
By taking on the responsibility of paying back a loan he keeps coming back each week to the Credit Union.
After 2 years Jim has paid back the loan and still has €1,000.00 in shares and has the wonderful habit of coming into the Credit Union each week.
JIM DIES SUDDENLY
Jim took the loan of €1,000.00 and bought the furniture and then died suddenly.
The insurance in the Credit Union covers the loan so it is paid off and the debt is cancelled. The family have nothing to pay.
The family also receives – His savings of €1,000.00 and his insurance on these savings – as he is aged under 55 years the insurance cover is 100% so the family get €2,000.00.
This example demonstrates not only good economics but a proper sense of responsibility to one’s family to take out a loan which is insured and thereby relieve them of a burden in the event of an unexpected death.
Terms & Conditions
Our rate for personal loans is 12.68%.(APR). “For a €1,000, 1 year variable loan with weekly repayments of €20.43 and a interest rate of 12.68%, the total repayments will be €1061.95″