# Will I get a loan during unpaid leave if I join a credit union?



## NGUYEN (20 Aug 2013)

I am currently on maternity leave and was hoping to take the 16 weeks unpaid leave.  I was planning to open a credit union a/c and perhaps save 1,000 Euro a month over the next 4 months. 

Has anyone applied for a loan to the credit union giving the reason as unpaid leave or should I come up with another reasons and if so what evidence do they look for to prove why I want the loan.

If I have €4000 saved how much of a loan would I be able to get ?  I have no child card costs or mortgage (luckily)

Thanks in advance


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## dereko1969 (20 Aug 2013)

But how will you be able to pay back the loan whilst on unpaid leave?


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## peteb (20 Aug 2013)

Why cant you just use the €4k saved to get yourself through the 4 months? You've no mortgage as you've already said, so 1k a month should be plenty.


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## NGUYEN (20 Aug 2013)

The unpaid leave is for 4 months - we have 2 children and my husband is a stay at home Dad so no other income.  Our bills paid by direct debit are 1,500k excluding food/petrol/car tax so 4k is not sufficient for 4 months leave.  

My second child is not well so we have medical expenses and I want to spend more time with her to ensure she has bonded as she spent the first 4 months of her life in hospital.  I have some savings but not enough for the 4 months leave - these saving will be used to make the repayments to the credit union.


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## dereko1969 (21 Aug 2013)

Can your husband look for a job whilst you're on unpaid leave?


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## Slim (21 Aug 2013)

NGUYEN said:


> Has anyone applied for a loan to the credit union giving the reason as unpaid leave or should I come up with another reasons and if so what evidence do they look for to prove why I want the loan.
> 
> If I have €4000 saved how much of a loan would I be able to get ? I have no child card costs or mortgage (luckily)
> 
> Thanks in advance


 
Addressing your first question first, the credit union may be uneasy about you citing 'unpaid leave ' as the purpose of the loan. You may have to show them docs to prove you will be returning to work.

As to how much you could borrow, if you have saved €4,000 over the 4 months, you may be allowed to borrow twice or three times this, but it will depend on the particular credit union.


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## peteb (21 Aug 2013)

Just to be clear, you mentioned you have savings.  Is this in addition to what you have in the credit union? Because the credit union won't allow you withdraw money to repay the loan.  The savings stay there until the loan is reduced beyond a certain point.


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## Luternau (21 Aug 2013)

NGUYEN said:


> Our bills paid by direct debit are 1,500k excluding food/petrol/car tax so 4k is not sufficient for 4 months leave.



This speeding seems very high-considering there is mo mortgage. Can this spending be reduced ?


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