CU loan €8k, shares €5.5k. Reduce shares to below 25% of outstanding loan balance?

[alicialee]

hi can anyone help me i have a loan out with the credit union for 8,000 i have 5,500 in my shares does anyone know if im intitled to take anything out of my shares thanks.

 

[The_Banker]

I would think no as the shares is lower than the amount outstanding in the loan.

However, if you have a good track record with repayments they might allow you to take a small amount out.

 

[Sandals]

i know i borrowed €40k few years ago, needed to keep €5K in account all the time. Ask at your credit union is the best thing.

 

[Graftgirl]

I think the Credit union loans 3-4 times your savings depending on your particular Credit union so if that is the case then you would think that it would be fine to leave €3000-€4000 on a €8000 loan IMO

 

[millieforbes]

I think the Credit union loans 3-4 times your savings depending on your particular Credit union so if that is the case then you would think that it would be fine to leave €3000-€4000 on a €8000 loan IMO

+1

I think local rules vary - I think my local CU has a 4 times rule. You should ask if can access the funds

 

[Crugers]

hi can anyone help me i have a loan out with the credit union for 8,000 i have 5,500 in my shares does anyone know if im intitled to take anything out of my shares thanks.

The only ones that can help you are the Board of your CU.

You are not entitled to withdraw any of your Shares.

If you ask your CU, the Board may decide to allow you reduce the share balance.

The CU Act allows the Board to decide in cases like yours but prohibits the Board from allowing you to reduce Shares below 25% of the outstanding loan balance.
HTH

 

[darag]

The only ones that can help you are the Board of your CU.

You are not entitled to withdraw any of your Shares.

If you ask your CU, the Board may decide to allow you reduce the share balance.

The CU Act allows the Board to decide in cases like yours but prohibits the Board from allowing you to reduce Shares below 25% of the outstanding loan balance.
HTH

If they don't allow a reduction in balance alicialee is probably paying over 29% APR (assuming 10% for the loan and a slightly above average dividend of 1%). It would be significantly cheaper to put 2.5K on a credit card using the money to close the credit union accounts completely.