Loan Applications
St Canice’s Kilkenny Credit Union will consider loan applications from members for any worthwhile purpose. Each application is treated in with the utmost confidentiality and will be considered on its own merits.
What you see is what you get, there is nothing hidden in a Credit Union Loan
Credit Union members pay no service charge, arrangement or documentation fee on loans. Loan Protection Insurance is provided free of charge by the Credit Union on all loans (terms and conditions apply). This insurance can be costly when borrowing elsewhere.
There is no penalty for early clearance of a Credit Union loan and no ’balloon’ payment at the end. Flexible term and repayment options are available with all Credit Union loans which are always at a competitive rate of interest.
One really attractive feature of a Credit Union loan is that you pay interest on the reducing balance only. In other words, if you wish to pay off a large chunk of the loan in one go, you only pay interest on the outstanding amount of the loan.
Applications for loans are made on a standard loan application form. Loans can be applied for by calling to our office, by telephone or via the members section of the web site. Our staff will give you any assistance required. Loans will then be considered by a Loan Officer, or will go to the weekly Credit Committee meeting.
What you need when applying for a loan
In deciding whether or not to grant the loan the loan officer or credit committee will take into account the members record of savings and loan repayments, as well as ability to repay. Once the loan is granted the member will be asked to complete a credit agreement, which is a legally binding document, being a promise to repay the loan, and to commit to regular repayments.
The Credit Union look for a reason to give a loan not to refuse a loan.
Remember - only members are eligible to receive loans from your credit union.
Planning and managing repayments
Credit unions are flexible with regard to repayment plans, though there are some legal limitations to length and amount of loans. The member will be advised on the best repayment plan to meet their own circumstances. Members are generally advised to repay a loan in as short a time as possible. 15 years is currently the maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the credit union, which will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan will be renegotiated if possible.
There are no penalties associated with clearing your loan quicker than agreed.
Interest on credit union loans
By law credit unions cannot charge any more than 12.68% (APR) per annum (1% per month) on the reducing balance of a loan. Currently St Canice’s Kilkenny Credit Union rates range from 2.1% (APR) to 8.90% (APR). Credit unions do not charge fees or transaction charges. View our loan calculator to see how reasonable a credit union loan could be. Since the interest is charged only on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned. | 
07 September 2010
