Loans
Try out our quick and easy loan calculator below
This calculator is for illustrative purposes only, to give you, the borrower, an overview of the potential cost of borrowing. The Credit Union, or any of its staff, cannot be held responsible for any errors. Please note that this calculator only provides an indicative quote and actual repayments may vary.
Loan Applications
The Credit Union will consider loan applications from members for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits. It is credit union policy to meet the borrowing requirements of as many members as possible.
Applications for loans are made on a standard loan application form. Loans can be applied for by calling to our office, by telephone or via the members section of the web site. Our staff will give you any assistance required. Loans will then be considered by a Loan Officer, or will go to the weekly Credit Committee meeting.
In line with the Lending Policy of Thomastown Credit Union, certain loan rates have for for a minimum duration and minimum loan amount. eg The 50th Anniversary Loan is for a minimum loan of €5,000 and over a maximum duration of 5 years. Special Motor Loan is for a minimum loan of €5,000 and over a maximum duration of 5 years. First time Borrower Loan are for a minimum loan of €5,000 and over a maximum duration of 5 years.. Special Loan Improvement Loan rate is for a minimum loan of €5,000 and over a maximum duration of 10 years.
Your loan will be assessed within 72 hours.
What makes us different?
- There are no hidden fees or transaction charges
- Fair rate of interest
- Repayments are calculated on a reducing balance, so you pay less interest with each repayment.
- Once you are eligible for a credit union loan, repayments terms can be designed around your needs but may need to increase if you are topping up your loan.
- Your credit union loan is insured at no extra cost to you. Other lenders charge for this. (Terms & Conditions apply)
Planning and managing repayments
Credit unions are flexible with regard to repayment plans, though there are some legal limitations to length and amount of loans. The member will be advised on the best repayment plan to meet their own circumstances.
Members are generally advised to repay a loan in as short a time as possible. 5 years is currently the normal maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the credit union, which will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan will be renegotiated if possible.
There are no penalties associated with clearing your loan quicker than agreed.
Interest on credit union loans
By law credit unions cannot charge any more than 1% per month on the reducing balance of a loan. This represents an interest rate of 12.68% APR (Annual Percentage Rate). Credit unions do not charge fees or transaction charges.
The Credit Union is currently offering competitive rates. View our loan calculator to see how reasonable a credit union loan could be. We also have regular promotional rates of interest. Since the interest is charged only on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned.
Loans Assessment Criteria
We strive to lend to our members, but all loan applications must meet the lending criteria set out in our Credit Policy.
- Capacity to repay - guided by Debt to Income Ratio and disposable income, both now and for the duration of the loan
- Credit rating as outlined in a Credit Report Check - CCR. Write offs, settlements and arrears will be taken into consideration as part of the lending decision. Mortgage arrears will require Central Bank guidance to be followed.
- Financial status to repay all debt. Credit Cards and overdrafts used are taken into account as part of debt. Excessive debt levels on self employed accounts will be taken into account also as may income levels sufficient to pay a living wage. Self Employed accounts will be assessed for profitability over time and sustainability for drawings.
- Income stability & variety - including length of time in employment, sources of income, sector stability and permanency of income will be assessed. Connected borrowers, where more than one party is dependent on one source of income will be taken into account as part of loans approval. Length of time employer is in operation will also be factored in and extra checks may be run in this regard or if income sources are overseas.
- Lifestyle Spending - large withdrawals not included in Credit Report checks will be queried. Evidence of lifestyle spending from bank statements / credit cards, e.g. gambling will be taken into account in loans assessment. Declined Standing Orders will also form part of the lending decision.
- Lending History with the Credit Union - arrears on past loans will be taken into account in the lending decision.
- Security offered - savings can be used as collateral against the loan and will play a part of the lending decision and guarantors can also be requested. Generally 10% of the value of the loan is sought.
- Loans may be stress tested
- Top Up lending will be assessed for sufficient repayment on prior loans. Repayment amounts may have to increase with each subsequent loan or a top up may be refused or deferred to a future date. Top up lending is reviewed to ensure excessive core debt level is not building up.
- Evidence of all income sources must be provided and evidence of debt and contracts of employment may be requested. Where there is variability of income exists you may be requested to provide more than one Employment Details Summary.
- Purpose of the loan is part of the lending assessment and evidence of purpose may be requested. Additionally terms requiring payment to third parties may be stipulated.
- Amounts requested in loan applications must be reasonable in relation to existing borrowing and in line with income levels.
Drawdown
Please remember the following:
- You must come into the Credit Union to drawdown your loan.
- If it is a Top Up loan you will have to clear the interest on your existing loan before drawing down the new loan. Please ensure you have the means to pay this amount with you. This is a Credit Union Policy and cannot be overridden.
- Joint accounts require both parties to be present for drawdown.
- You can drawdown via methods of Cash / EFT to a bank account / Cheque. Large amounts should be taken via EFT or Cheque for your own protection. There is a maximum of €2,000 which can be taken in cash.
- EFTs when made before 3.30 will reach the other account by end of the following business day. EFTs are processed several times a day at the Credit Union.
- If it is a new loan you are likely to need to set up a Standing Order with your bank. This form may be filled out at drawdown but must be done quickly to ensure the first repayment date is made.
- If it is a Top Up Loan you may need to increase the existing standing order with your bank
