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LOANS
WHY BORROW FROM KILDRESS CREDIT UNION?- All loans granted are insured by the Credit Union with no cost being transferred to the member.
- All transactions are free of fees to the member
- Interest rates are explained at the time of taking out the loan and are not subject to change throughout the life of the loan.
- The loan process is flexible in order to suit member’s particular circumstances.
- No penalty for early redemption or increased payments.
HOW MUCH DOES A CREDIT UNION LOAN COST?
The interest rate for a loan with Kildress Credit union is 1% per month on standard loans however if you are able to take out a secured by shares loan the interest rate is lower. At present it is 6.9% per year. In addition there are other loans for various requirements e.g. oil, holiday, school uniform loans. Conditions and rates of these loans are available by contacting the Credit Union office. See loan calculator for examples of repayments. Please note that the calculator is for illustrative purposes only please contact Credit Union office for exact quote.
Annually every member repaying a loan will receive an interest rebate at the end of the Credit Union financial year. This rate varies according to the performance of the Credit Union. The payment of this rebate happens automatically with no administrative cost to the member. Therefore the cost of the loan reduces.
Please note that should a member decide to pay more than the agreed amount during each payment period or reduce the loan by the payment of a lump sum then the overall interest payable will reduce accordingly, with no administrative cost or penalty.
AGE LIMITS:
A member must be at least 18 years old before applying for a loan. A loan to a member approaching their 85th birthday must be agreed and cleared by that birthday or covered by the members pledged shares. Members who have passed their 85th birthday must enter into an agreement that their loan is guaranteed or must pledge their shares in writing.
HOW MUCH CAN I BORROW?
The maximum loan is £50,000 above a member’s savings. However the amount that a member can borrow is dependent upon a number of factors, relevant at the time of applying for a loan, see below. Normally a member can borrow up to the amount of their savings at any time.
HOW DO I APPLY FOR A LOAN?
Loan applications should be made in person at the Credit Union office and on the relevant form. Depending on members account balances etc., the loan request will then be considered either by one of our team of loan officers, or if necessary forwarded to the Credit Committee for consideration. The Credit Committee normally meets weekly to consider previous week applications.
Loans are decided on the member’s ability to repay, so the member is advised to bring in as much evidence as possible when applying for a loan. The following are some of the factors taken into account when considering a loan application- Total financial outgoings of applicant
- Applicants employment details
- Ability to repay
- Purpose of Loan
- Loan repayment record, on previous loans will ALWAYS be checked. This will be the single most important factor in determining the success of a loan application.
- Members are expected to state the purpose for the loan they are seeking and, on occasion, proof of this purpose will be sought.
- When negotiating repayment of their loan, members are expected to make repayments over as short a period as is affordable for them.
For loan application form click here. The form can be downloaded, completed and taken to the Credit Union office, where it should be signed in the presence of a member of staff. Alternatively, you can email the completed form to the Credit Union office and call in to sign same.
PROMISSORY NOTE:
Before any loan is paid out the member is required to sign a Promissory Note. This is a legal document where the member promises to repay the loan and interest at a stated rate and period of repayment.
PLEDGED SHARES:
Where the amount of shares/savings at the time a loan is approved are equal to or less than the loan amount, those shares /savings become pledged as security for the loan and may not be withdrawn. Any money saved after the loan is granted may be withdrawn if the loan is not in arrears.
ARREARS:
Any member who is in arrears will NOT be considered for another loan.
Please note that Kildress Credit Union reserves the right to consult with other Credit Unions and/or credit reference companies in relation to any loan request.
FIRST TIME LOANS:
A first time loan applicant is required to meet with a member of the Credit Committee prior to any loan being issued. This meeting is to ensure that the borrower understands the process and the commitment that they are undertaking by Kildress Credit Union providing a loan. There is NO specified probation period for any member to serve before applying for his/her first loan.
WHAT CAN I BORROW FOR?
The Credit Union will consider loan applications for productive and / or provident purposes. So whether you want to borrow for home improvements, a new car, a deposit on your new home, a wedding, education fees, uniforms, a holiday or special occasion you know Kildress Credit Union will deal with your application in the strictest of confidence and will consider each application based purely on its merit, including your previous borrowing history, if applicable.
HOW DO I MAKE MY REPAYMENTS?
As with borrowing, we try to make repaying, as member friendly as possible: we will tailor a repayment schedule to suit your individual circumstances. You can repay weekly, fortnightly or monthly, with loan terms up to five years.
You can make your payment directly over the counter at our office by cash, cheque or debit card or for your convenience, we can also accept payments, by standing order direct from your bank or building society. Telephone payment by debit card is also accepted. When your loan is issued you will sign a promissory note: (a legally binding document) which clearly outlines your repayment agreement.
WHAT IF I CAN NO LONGER MEET THE REPAYMENTS AGREED IN MY PROMISSORY NOTE?
We in Kildress Credit Union understand that unforeseen changes in circumstances can affect a member’s ability to repay their loan especially in today’s unpredictable financial climate. We promise that, providing you are willing to cooperate we will endeavour to deal with such changing circumstance, we can help and advise you should the need arise. You should contact our office staff immediately should you experience any difficulty repaying your loan.
Once you miss an agreed repayment your account will be in arrears, should this persist then your account will be brought to the attention of the Credit Control Committee. This committee will contact you in order to help you address this situation. Please response to any correspondence sent to you, the Credit Control Committee are here to help, where it can.
DON’T PANIC AND DO NOT IGNORE THE PROBLEM – IT WILL NOT GO AWAY.
Should you be unwilling to cooperate in trying to deal with your change of circumstances your file will be brought to the attention of the Board of Directors, who have the responsibility to collect your agreed repayments. Even at this stage any defaulting member is advised to discuss their change in circumstance with a member of the Credit Control Committee to come to a mutually agreeable solution. Should all attempts fail to collect money owed then Kildress Credit Union has in place procedures to take legal action in order to get back our members money.
Please note that your borrowing record will be taken into consideration if in the future you request any further loans. Additionally, any legal action taken to recoup members monies may affect your credit rating with other financial institutions
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