Kilrea & District No. 5 - Loans

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This Credit Union has been legally authorised since 1989 to make loans to its Members.

Her Majesty’s Government changes the maximum amount of loan permitted from time to time. The Credit Union also has its own limits, which depend on the overall amount of cash that it has available for lending and on the number of potential borrowers. Generally, however, the Credit Union will try to lend as much as possible to its Members if they can fulfil the relevant conditions.

Interest is currently charged at 9.9% (APR) variable. – It is always advisable to check the APR (annual percentage rate) when comparing the cost of alternative loan arrangements.

If a Member can pay-off a loan sooner than agreed, then the Member will benefit by paying correspondingly less interest on that loan.

A Member will become eligible for a loan after 13 weeks of regular saving.

A loan will not be given on the basis of a sudden large increase of shares.

A loan cannot be granted until any previous loan is paid off.

The loan application form should be completed at least 1 week before the loan is required.

Loans must be paid-back on a regular weekly or monthly basis, or as otherwise agreed with the issuing officer.

A Member must not apply for a loan to service a loan from another lending institution such as a bank or building society etc.

If a Member runs into difficulty in repaying a loan for any reason (sickness, industrial dispute, bereavement, weather problems, etc) then the Member should immediately inform the Credit Union so that alternative arrangements can be made to help the Member to remedy the problem.

The Credit Union has, under law, a system in place whereby it can recover unpaid loans with any accrued interest after a period of consultation. In extreme circumstances the Credit Union will take a defaulter before the Court in order to protect the shares of other Members.

The Credit Union has a legal system in place whereby it can recover unpaid loans with any accrued interest and legitimate expenses after a period of consultation. In extreme circumstances the Credit Union will take a defaulter before the Court in order to protect the shares of other Members.