# Loans for low incomes



## looly (13 Mar 2008)

I am on disability allowance and would like a small loan, approx 2/3 grand. In northern Ireland you can borrow from the social welfare and they will deduct repayments from your weekly dole or equivalent. Is there a similar social welfare loan here in the south? If not, do I have any other options for a loan on a low income? (PS.I do not have any debt or credit problems)


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## Klesser (13 Mar 2008)

The credit union would be your best bet I think.  You do need a record of saving with them though


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## looly (13 Mar 2008)

Klesser said:


> The credit union would be your best bet I think.  You do need a record of saving with them though


Thankyou. Would I be able to get aloan in say, June, if I started saving with them now?


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## pinkyBear (13 Mar 2008)

What they do is they will give you a loan for twice the value of your savings - first of all, then as you have a borrowing history with them you can take out a larger loan.
P


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## sandrat (13 Mar 2008)

double post


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## sandrat (13 Mar 2008)

i borrowed 12000 from my credit union with only 500 in savings. you need to make weekly payments equivalent or above what the repayments on the loan would be in order to prove you can afford to repay it. Different credit unions have different rules with regards to how much you can borrow based on savings. Some only give you double some 4 times and some will give you whatever you can afford the repayments for. Shop around and see.


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## pinkyBear (13 Mar 2008)

> i borrowed 12000 from my credit


 Hi there yes - but I am sure you had a loan history with them - the first few loans are usually multiples of what you have saved...


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## Yoltan (13 Mar 2008)

looly said:


> Thankyou. Would I be able to get aloan in say, June, if I started saving with them now?


 

Start saving straight away and borrow a small amount and pay it back fairly quickly and in full. Do this a few times with smallish amounts. They will soon see that you are well capable of paying it back.


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## sandrat (14 Mar 2008)

pinkyBear said:


> Hi there yes - but I am sure you had a loan history with them - the first few loans are usually multiples of what you have saved...


 
Nope, it was my first loan with anyone I was only 23 at the time never had anything other than a current account before that. Think I only needed a minimum of 200 euro in my account to apply for a loan. Application was based on whether I could afford to make repayments or not.


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## irishpancake (14 Mar 2008)

sandrat said:


> i borrowed 12000 from my credit union with only 500 in savings. you need to make weekly payments equivalent or above what the repayments on the loan would be in order to prove you can afford to repay it. Different credit unions have different rules with regards to how much you can borrow based on savings. Some only give you double some 4 times and some will give you whatever you can afford the repayments for. *Shop around and see.*



Credit Union membership is based on your locality or occupation, there is a "common bond" restriction.



> Common bond
> 
> Everyone is entitled to become a member of a credit union but must have something in common with fellow members - they must either live or work in the same locality (community bond), work for the same employer (occupational bond) or work in the same occupation (associational bond).  You can be a member of more than one credit union if you come within the common bond. If a member ceases to have a common bond (they leave the area or job where the common bond exists), they can continue to save in the credit union and retain their membership and voting rights.



see [broken link removed]

Therefore the advice to "shop around" has not got the meaning it would have if we were talking about Banks.


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## sandrat (14 Mar 2008)

it depends on where the OP lives. someone else telling them they can only borrow twice what they save is just as invalid if its not true for the local credit union. The OP could have common bonds with a number of different areas. there is no point in joining the local credit union to borrow money if they won;t lend you as much as you want so the OP should find out whats on offer there before opening an account and not rely on being told that they can only borrow twice what they save when it could in fact be means tested rather than on a savings history. Many credit unions now use credit scores before approving loans now too.


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