# Small loans: mad to go with current APR?



## katie_noah (13 Mar 2013)

I need to upgrade my house heating system. Storage heaters are killing me. It'll amount to about 9k for installation plus ESB payment for gas connection.

I'm looking at taking out a 10k loan over 5 years.  I'm on a low weekly salary so couldn't pay it off sooner. I'm lucky in that my mortgage is cleared but that also means I can't use EBS.

I've always banked with AIB. I've started an account with Credit Union but can only afford small monthly amounts.  I don't have other loans.

AIB: will give me 10k with 3k interest over 5 years (var rate).
Credit Union: for 10k, 2,677 interest over 5 years

Both rates seem very high but if there's no sign of these coming down in the near future, are these my best options?  Is there anything I need to be wary of in the small-print?

Thanks for any thoughts...


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## Gerry Canning (13 Mar 2013)

I would suggest that Credit Union is the best around. AIb to get (profitable) will probably increase your variable rate.I really don,t think you should trust them. The Union,s have much more of honesty and helpfulness about them. Whilst K3 interest seems high , that K 3 has to cover wages , non-payers etc. As you can see Credit union is cheaper.
With new heating I would hope you make savings on heating that will help you.
Regards .Salmon.


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## Jazz01 (13 Mar 2013)

Would second going with the credit union...

Also, have you any savings that you could off-set against the 10K? less to borrow means less to pay back... Also, have you checked the credit union loan over 4 years? There might not be that much of an increase in what you need pay back each week/month - & if you are saving with the heating system, you could/might be able to work that against the re-payments... don't know how much saving for the storage heating v your new system, so just a suggestion here...

Also re the new system - have you got a few quotes on the work? Not too sure if you qualify for seai grants for this, but worth a check.... www.seai.ie/Grants/


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## katie_noah (14 Mar 2013)

Many thanks to you both.  Much appreciated!  Will go CU.  Hoping to go the SEAI route too.  Thanks!


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