Large Credit union loan with small savings, possible?

M

Marinchik

Registered User
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Hi there,

Could you please advise, if i just started my saving with Credit Union and have around €700 and was saving for like 3,5 month can i take out a loan for say €8K-€10K? i heard that you can take loan only 3x larger than your savings or something....

Thanks a mill,
 
Different CUs have different rules. Best to check what the lending criteria are with yours. If you can save €3.5K in 5 months then why not just borrow €4.5-€6.5K elsewhere? Saving while borrowing normally does not make sense.
 
Marinchik- could you clarify that you have €700 in savings after 3 and a half months, or have you €3,500 after 5 months as clubman says?

I'd say you should call into your local CU and see what they can offer you.
 
If the op was able to save 3.5 k in three to five months then borrowing 8 to 10k would only be roughly three times his savings which shouldn't be a problem in a CU. I think the op is looking at saving up a total of 700 euro over three to five months in a cu and on the strength of that try and borrow 8 to 10k.
The answer to the op's question is yes it is possible to borrow a substantial multiple of one's savings from a cu but whether your cu will do it for you is a different matter - as others have said you'll have to ask them.
 
I would say the answer is more than likely know, 3 to 5 months savings history would not satisfy the board in giving you ten times your savings,
 
Thanks for your replies,

I just emailed my Credit union and they said that they will need to see my last payslip and me:) and then they will decide whether i can qualify for this amount or not, i just though that they only judge your capability to borrow by your savings amount, but if they will take my salary into consideration, then shouldn't be any problems:)
Just wanted someone elses opinion before i go and ask them, was affraid i'd ask something silly, cos i don't really know what way they work;)

Thanks again,
 
Don't be afraid of asking something silly Marinchik, credit unions can be quite flexible and also a lot of them have different rules and regulations, so it's always worth going in for a chat with them and seeing what they can do for you.
 
Sorry - I mistakenly (?) assumed that the original post meant 5 months of savings at €700 p.m. = €3.5K.

Is the CU the best/only option available to you? They are not always the most competitive of lenders especially when you factor in the "cost" of keeping money in shares/deposits while borrowing at the same time instead of just borrowing less in the first place. On the other hand they may be more flexible than other lenders.
 
In my experience, Credit Unions are about the most flexible and understanding of lenders and what is most important to them is your relationship with them. If you have a history of loans from them in the past, that is taken into account in making their decision. Also - work out on paper exactly what you propose and how you propose and bring it to them. If you don't ask, you don't get. The rules on loans being a multiple amount of deposits aren't written in stone.
Good luck with it.
 
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