# Credit Union Personal Loan Rates



## serotoninsid (23 Mar 2012)

Does anyone have a link to C.U. Personal Loan Interest Rates?  I've only been able to find rates for Personal loans from the mainstream banks - with NIB offering the best rate @ 11% (...if 'best' is the right word!...).


Do Credit Union rates differ much from those of the banks in this regard?


----------



## demoivre (23 Mar 2012)

Rates depend on the individual CU, and what the loan is for. Google willl bring up numerous CUs for various counties, some of whom publish interest rates, such as [broken link removed]. For most if not all credit unions you will probably be required to keep some funds on deposit as security for your loan so you have to factor in the opportunity cost of keeping those funds on deposit. The credit union act allows you to offset those funds against the loan though, even though the CU manager/board may not want you to do so !!


----------



## Slim (23 Mar 2012)

serotoninsid said:


> Does anyone have a link to C.U. Personal Loan Interest Rates? I've only been able to find rates for Personal loans from the mainstream banks - with NIB offering the best rate @ 11% (...if 'best' is the right word!...).
> 
> 
> Do Credit Union rates differ much from those of the banks in this regard?


 
As stated, CUs operate independently of each other, so in theory, there are 430 or so individual loan rates in operation in ROI. Of couse, many are the same as there are only so many rates that can be offered in reality. The absolute maximum that can be charged is 1% per annum, 12.68%apr.

You can only borrow from a credit union of which you are a member so your choice is limited.


----------



## serotoninsid (23 Mar 2012)

@demoivre & Slim:  Thank you both for your posts.


I guess the first hurdle I face is not being a member of ANY credit union right now.  While there was a potential opportunity that would result in me wanting to draw down a loan in the short term, it may be that I let this pass - and try again at a future date.


If my objective is to secure the lowest rate possible....

1. Which credit union offers the best rate at the moment?
2. How long would I need to be an account holder before I would have any credibility in approaching them for a loan?

I'm thinking in terms of a €20,000 loan over 84 months.


Thanks in advance for any info anyone can provide.


----------



## ontour (23 Mar 2012)

Credit unions operate under common bonds which dictate who can be a member, you can not just pick the credit union with the best rates.  Most common bonds are based on the geographic area in which you live or work.  You should be able to identify your local credit union on www.creditunion.ie or www.cuda.ie  There are also common bonds based on professions such as teachers, Gardai, ESB etc. Anecdotal evidence is that many of these credit unions had better rates.

Credit unions are of significantly varying sizes and financial health.  To some credit unions a loan of 20k would be very big as a first loan.  It is likely that you would need at least a year of savings and 5-7k in savings but this would vary greatly between one credit union and another.

Historically credit unions are not renowned for having the lowest rates but with the state of the banks that is changing.  The fact that you are likely to have a sigificant amount of deposit (shares) tied up at a low rate of return also needs to be factored in to the cost of borrowing from the credit union.  There are a few good threads that gives example of the actual cost of credit union borrowing.


----------



## Byrne84 (18 Apr 2012)

Ontour is pretty spot on with what they have said.

My only other contribution is to say that the interest rate may also be dependent on what the loan is for. For example car loans and loans for house repairs may attract lower interest rates than other loans but it depends on each individual credit union.


----------



## serotoninsid (18 Apr 2012)

Byrne84 said:


> Ontour is pretty spot on with what they have said.
> 
> My only other contribution is to say that the interest rate may also be dependent on what the loan is for. For example car loans and loans for house repairs may attract lower interest rates than other loans but it depends on each individual credit union.



Thanks for that.  I have decided to keep saving - and do without the loan.  The cost of credit is ridiculous - and I think it would be wiser to hold off and do without it.


----------



## Slim (19 Apr 2012)

Good for you. It might be no harm to find your local CU and join, even saving a relatively small amount. If you are employed by  major employer, i.e HSE, Eircom,etc, there may be a credit union available to you through work. If your spouse is a member of a credit union, you will be able to join that, although lending to members outside the common bond is limited.


----------



## tinofapples (28 Apr 2012)

My current loan from my credit union is at 4% and I was overjoyed to be offered it. The problem now is that I'll what it next time around as well


----------



## serotoninsid (1 May 2012)

tinofapples said:


> My current loan from my credit union is at 4% and I was overjoyed to be offered it. The problem now is that I'll what it next time around as well


4%?  May I ask what credit union that is?


----------

