Are Credit Union not giving out loans?

[kfk]

Hello

I have been saving weekly, with the Credit Union since September 2008 and have a balance of €2,500. I applied for a loan last week for €12,000. They took my application to their weekly meeting and told me that I would need an extra €400 and a guarantor. I lodged €600 into my account today and told them I had a guarantor for the loan. The person behind the desk then told me I would not get a loan this month or next month but maybe in September, as they have reached their limit for this July and August and wont be giving out anymore loans until then.


Has anyone else had this problem? Is this common practice throughout the Credit Unions? I would have been saving elsewhere if I knew this would happen. TIA

 

[ontour]

Every credit union is financially independent. They manage the funds that they have available to lend. Your story is a bit strange as most credit unions had far more in savings than they had out on loan. They got involved in all sorts of financial instruments but most have pulled and hold more money on deposit. This shoiuld leave them with more funds available for qualified loan candidates.

If you asked what you needed to do and fulfilled the criteria and then went back to be told it would take a few months, I suggest that you request to meet the manager so that you are sure you are getting the appropriate service/ explanation.

 

[mac2]

That doesn't sound right. If you were told you needed to do certain things and you did them, then there should be no problem. Most credit unions have plenty of funds to lend. I would ask for an appointment with the manager, if I were you, so you get a proper explanation.

 

[Slim]

The person behind the desk then told me I would not get a loan this month or next month but maybe in September, as they have reached their limit for this July and August and wont be giving out anymore loans until then.


Has anyone else had this problem? Is this common practice throughout the Credit Unions? I would have been saving elsewhere if I knew this would happen. TIA

You may be a member of one of the few CUs which are heavily lent out. THese are mainly in Dublin area. This is not common across the CUs, far from it. Approach the manager and see what can be donme.