Max Credit Union Loan

Wanton

Just wondering what is usual max load available throught the credit union?

Victor

Usually 2-3 times what you have saved and a legal maximum of about €25,000.

EKRIUQ

I know someone that got €3,500 with only €400 savings

Wanton

looking for €15000 for part of a deposit for a house.

i can come up with the €5000 1/3, but havent used the credit union in years.

wonder what the odds of getting a loan are?

Victor

They, like any lender, want security - a track record and an ability to repay.

BTW Maxing out your credit in a bubbly property market isn't a great idea.

Wanton

but paying €800 a month rent is?

myself and my gf paying a reasonable €400 atm, but have to move. thats what we will pay for a house or flat.

dead money. as compared to owning a house. even in a "bubbly property market". least then it money for a reason. mortage and loan will only total around €900.

dont have many other options.

therecklessone

Originally posted by TIPPTOP
I know someone that got €3,500 with only €400 savings

Depending on circumstances they will give up to 10 times your savings.

Generally its:

3/4 X savings without a question.

Up to 10 X with loan committee meeting to decide.

antoinolachtnai

This isn't at all like your case, but it was reported in the Irish Times that the Eircom Credit Union recently appointed a receiver in respect of a debt of over EUR180,000.

Quigs Snr

My mother opened a credit union account for me as a child. I think she put a euro a week in it and took that out for things like graduations etc.... Anyway, last year when I was buying a house there was 200 euro in it, I asked for a loan of 16k and it was not a problem. (I didn't take the loan in the end, but months later they were still calling me asking me was I going to take it or not).

jesus_thats_gre

There are two large credit unions in Dundalk. Once has become so big they are sticking an ATM machine outside and they have no limit on the size of loans. The other has a limit of 8 times your saving and a commitee can extend that.

In_Diana_Jones

Well,

using a credit union loan to get a mortgage generally* puts you in default automatically on your mortgage, hence the bank could reposess your shiny new house whenever they want!

*Because generally a deposit has to be non-loan money.

ChipZilla

Originally posted by Wanton
myself and my gf paying a reasonable €400 atm, but have to move. thats what we will pay for a house or flat.

I'm just curious as to to what kind of place you can get for a mortgage of 400 a month? Unless you're up the side of a mountain, that's not going to do much for you...

gogo

Originally posted by In_Diana_Jones
Well,

using a credit union loan to get a mortgage generally* puts you in default automatically on your mortgage, hence the bank could reposess your shiny new house whenever they want!

*Because generally a deposit has to be non-loan money.

AFAIK she is right, , when you get a mortgage they will take into account what loans you have and thus the mortgage will be lowered.

My credit union says that the max ammount of loan you can get is three times what you have in your account, but i have seven times what I have in my account. they are fairly reasonable as they're biggest income is the money they make on interest on loans.

Also a friend of mine opened his account on a tuesday borrowed ten grand for a car on the following tuesday. He fcuked off to england, never paid it back, when he did come back he went to them explained his 'circumtances' and then asked for a business loan of 25,000 and got it. As far as i know he has about 800 savings.
The credit union rock!

RainyDay

Originally posted by gogo
Also a friend of mine opened his account on a tuesday borrowed ten grand for a car on the following tuesday. He fcuked off to england, never paid it back, when he did come back he went to them explained his 'circumtances' and then asked for a business loan of 25,000 and got it. As far as i know he has about 800 savings.
The credit union rock!

Depends on your point of view. If you are a depositor and the return you are going to get on your savings depends on the quality of the loans they are giving out, then seeing them throwing good money after bad doesn't rock - it sucks.

Are you saying that he never paid back the 10k and they wrote off this debt and gave him another 25k? I'd find that VERY hard to believe?

gogo

Are you saying that he never paid back the 10k and they wrote off this debt and gave him another 25k? I'd find that VERY hard to believe?

No thats not what i said.
Of course he has to pay back the the 10k, The 25k was a business loan, ie, it was for his business (so he has a fullproof way of paying it back). I think the credit union are great, do you know any other bank/lending instiution that would give someone like my friend a second chance? He is now doing really well purely thanks to the chance the Cu took on him. All that said I do see your point of throwing good money after bad, i'm sure it happens.

If you are a depositor and the return you are going to get on your savings depends on the quality of the loans they are giving out,

Im really not to sure on the returns the credit union give on deposits/savings, but to be honest about it, if i gave you 10k tomorrow would you invest it in the CU, my guess is no, you'd go straight to the bank with it.
As i said before I believe the CU biggest sourse of income is the interest they make of people's loans -have you ever asked to pay of a loan before it's due in a CU, trust me, they get very narky about it, because they are losing interest.

Either way, in reply to wanton's question the answer is three times his savings.

RainyDay

Originally posted by gogo
The 25k was a business loan, ie, it was for his business (so he has a fullproof way of paying it back).

Anyone claiming to have a 'foolproof' way of paying back a loan would raise alarm bells with me. No business is foolproof.

Originally posted by gogo
Im really not to sure on the returns the credit union give on deposits/savings, but to be honest about it, if i gave you 10k tomorrow would you invest it in the CU, my guess is no, you'd go straight to the bank with it.

Many CU's will give better deposit rates than most banks. The best demand deposit rates in the market today is Northern Rock's Demand Online account is 3% (normal rate of 2.6% plus current 'bonus' of 0.4% for 6 months). Yet my CU gave 3% last year without any strain.

RicardoSmith

Originally posted by Wanton
but paying €800 a month rent is?

myself and my gf paying a reasonable €400 atm, but have to move. thats what we will pay for a house or flat.

dead money. as compared to owning a house. even in a "bubbly property market". least then it money for a reason. mortage and loan will only total around €900.

dont have many other options.

You should make allowance that if either of you loses their job, or has to change job and their salary is reduced that your combined salary could be a lot less. So make sure that with only a third of your current salary you'll be able to survive.