The two most important things about a loan are, being able to borrow the money and being able to repay it. It’s your loan, you should be able to do both in ways that suit you. After all, your credit union is there to facilitate you, the member, whether saving or borrowing.
Before taking out a loan of any kind, it’s worth taking the time to understand how lending works.
That way you can compare the benefits and be aware of the risks. Here are some of things that make a credit union loan different:
- There are no hidden fees or transaction charges.
- Credit union interest rates are fair and reasonable and capped by law.
- Repayments are calculated on your reducing balance, so you pay less interest with each repayment.
- Once you are eligible for a credit union loan, repayment terms can be designed around your needs.
- Your credit union loan is insured – subject to terms and conditions – at no direct cost to you. Other lenders charge for this.
- You can pay off your loan early, make additional lump sum repayments or increase your regular repayments, without a penalty. Other lenders may charge you extra for paying them back faster!
Your credit union is flexible. You agree a payment plan that suits you today and if your situation changes, you simply talk to your credit union about possibly changing your repayment plan. Your credit union is there to help you – the member – not to make a profit for someone else.
All loans are subject to approval, Terms & Conditions apply. If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating which may limit your ability to access credit in the future.