Which Loan Should I Take?
Taking out a loan with high street lenders can be a confusing experience, particularly with the number of loan providers and types of loans that are now available. Comparison of the true cost of a loan can be difficult to calculate. Obtaining a loan with your Credit Union makes sense, the loan will be fully explained and the crucial questions to ask when taking out any loan will be highlighted.
How Do I Compare The Cost Of Loans?
Total cost is the only fail-safe way of comparing loans from different providers. This should include all repayments, set-up costs, transaction charges or redeemable charges. If the rate is variable and not fixed over the term of the loan the total cost will be affected. Remember, there are no hidden costs with a Credit Union loan but there may be with any other loan – don't get caught out!
What About APR?
APR stands for Annual Percentage Rate and is the mathematical method of expressing repayment costs; it should reflect all the costs involved. Bank interest rates can change and alter the APR for many loan providers. Credit Union is different our APR, once agreed, is fixed for the term of the loan. We charge between 12.68% and 42.6% APR (1% - 3% per month on reducing balance) on our loans.
The rate offered will depend on a range of factors from status, your history with the Credit Union and market conditions at the time of application.
Why Borrow From Your Credit Union?
All surplus Credit Union profits are returned to members in the form of a dividend or in reinvestment in the Credit Union to provide enhanced services. As a true mutual, all surpluses are used entirely to benefit the member and the Credit Union.
How Much Can I Borrow?
The Credit Union has a policy on lending, designed to meet the needs of individual members and is based on ability to repay. New members must save for a minimum of 12 weeks or 3 months before becoming eligible for a loan. Once eligible, your first loan can be upto 1.5 times the balance of your savings. Once repaid, all further loans can be upto 2 times your savings balance.
For full details on lending policies, please ask the Credit Union.
