Why Borrow? | Members Benefits | Personal Finance | Loan Calculator | How to Apply
Terms & Conditions | Frequently Asked Questions

Q. How do I apply for a loan?
A. Each credit union will consider loan applications from its members for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits.

By contacting your own credit union in the first instance, members can ask for a quote for a loan without any obligations. If interested, members can either complete the Loan form over the phone or call in to the Credit Union office. The credit union loan officer or credit committee will then consider loan applications. The credit committee is appointed by the board of directors, and will usually consist of some of the board members (and volunteers also help in some credit unions).

In deciding whether or not to grant the loan, the committee or loan officer will take into account the member’s record of savings and repayments, as well as there ability to repay and need. Each credit union will have its own policy on conditions that should be met before a loan is granted.

Once the loan is granted, the member will be asked to complete a promissory note (which is a legally binding document on which the member promises to repay the loan), and to commit to regular repayments.

Q. What is the maximum loan I can apply for?
A. The maximum loan you can apply for in Dungannon Credit Union is your savings balance plus £10,000.00. eg £2,000 in Savings max loan £12,000.

Q. What about loan repayments?
A. Because credit unions represent the members who save and borrow with them, you’ll find your credit union is very flexible. Your credit union can help you choose a repayment plan that suits you. If your circumstances change and you want to alter your repayment plan, your credit union is there to help you. It’s also worth remembering that you can repay your loan in full, at any time, without any penalty or additional charges.

Q. What is a loan interest rebate and how can I benefit?
A. A number of credit unions offer a loan interest rebate to members out of the surplus funds at financial year end. This is generally declared at the credit union’s AGM and the loan interest rebate is applied to member’s accounts there after. Loan interest rebate is an extra benefit to members who borrow from credit unions by giving money back to members. In most cases, the rebate is applied to member’s accounts along with the annual dividend after the AGM. Each credit union offers a different loan rebate and in some cases if they do not have a surplus of funds may not offer a loan rebate at all. However, loan interest rebate is a major additional benefit to members as at give’s money back to credit union borrowers.

Q.What is the APR?
A. The annual percentage rate helps you compare the cost of different types of borrowing. The rate is how much interest is applied onto the loan principal.

Q. What is the loan principal?
A. The loan principal is the actual amount that is borrowed. E.g. £5000.

Q. Can I take out more than one loan?
A. Yes, provided that you are not over indebted by the new loan and you have the ability to make the larger repayments and have sufficient savings in your account.

Q. Is it true that you can only take a loan of three times your savings?
A. No, we will consider all applications on an individual basis. Your loan will be considered on your ability to repay, your employment record, your savings record etc.

Q. Why does my loan have to go to a Credit Committee?
A. All first loans greater than savings have to go to credit committee, thereafter a loan may have to be considered by credit committee when it has to be assessed in greater detail and approved or rejected by the majority of the committee.

Q. Why do I need to complete a health declaration?
A. If you are over a certain age limit and the loan is sizeable, in order to be covered by loan protection insurance from the Irish League of Credit Union, you need to complete a health declaration.