The Board of Directors have implemented changes to our Lending Policy. These changes reflect the current economic climate and following an increase in legislation and guidelines issued by the Central Bank have been put in place to ensure that we continue to protect Members’ savings.
The following information explains the requirements when applying for a loan.
Applying for a loan:
The primary consideration in reviewing an application is the member’s ability and willingness to repay the loan for the duration of the loan term.
Application Form and Supporting Documentation
All applications must be made on the standard form and the following supporting documentation must be provided. Members will be required to sign a consent form for the Irish Credit Bureau. Please note loans will not be assessed until all relevant documentation is received. The only exception to this is where the member is borrowing within their shares.
Income Related Documentation
- Three most recent payslips (other forms may be requested eg. P60 for previous year or other documentation in relation to employment status, permanency etc.)
- Proof of any other household income
- Bank statements for all accounts held for the last three months, including credit cards, mortgages and other loans
- Copy of last set of audited accounts (self employed)
- Copy of Revenue Commissioners Income Tax Assessment
- Social Welfare, Pension, FAS receipt evidencing payment
Expenditure Related Documentation
Proof of all payments i.e: mortgage, credit cards, other loan, life, health, house and card insurance.
Copy of employment contract (for new employment).
Savings Secured Loans
Members are reminded that they can borrow up to the value of their savings at the counter at any time and no additional documentation is required.
Top Up Loans
Members can apply for a top up loan before their existing loan is cleared provided that their loan is not in arrears.
Where a member cannot be covered under the Credit Union’s Loan Protection Policy we may require a Health Declaration to be completed.
Members with excess savings over their loan balance
Where a member decides to present their savings as evidence of their ability to repay the loan, the member will be expected not to reduce their savings below the loan balance for the term of the loan. Should a member request at any time during the term of the loan to reduce their savings below their loan balance, they will be expected to demonstrate their ability to pay the outstanding balance of the loan. the supporting documentation listed will therefore be required.
Rescheduling of Loans
If a member is in financial difficulties, there are a number of options available to assist him/her in rescheduling the loan. An appointment should be made to discuss all of the options. Any discussions in relation to rescheduling loans will be treated with the utmost confidentiality.
No further credit can be issued to a member who has rescheduled a loan until the loan is cleared in full unless in exceptional circumstances.
Loans to Members aged 85 and Over
Once a member reaches 85 years of age, loan protection cover ceases. In reviewing loan applications from members over 85, the applications will be assessed in the normal way., however a guarantor will be required who will be liable for the repayment of the loan in the event of default or death.
Savings while Repaying a Loan
In accordance with the ethos of the Credit Union, members are encouraged to save and to continue saving regularly while repaying a loan.
Notice: Under the Credit Reporting Act 2013 lenders are required to provide personal and credit information for credit applications and credit agreements of €500 and above to the Central Credit Register. This information will be held on the Central Credit Register and may be used by other lenders when making decisions on your credit applications and credit agreements.