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Credit union loans

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  • 04-11-2013 1:13pm
    #1
    Zane97
    Registered Users Posts: 306 ✭✭


    Why is it that they vary for what they charge on APR for their loans? My Local one charges 12.5 % apr where as one somewhere else in a small town charges 8%


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    #2
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    It's more a question of "why not?". Each CU is an independent institution, so can strike its own rates.


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    #3
    ElNino
    Registered Users Posts: 1,505 ✭✭✭ElNino


    By law Credit Unions can't charge more than 1% interest per month.


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    #4
    sedric
    Registered Users Posts: 49 ✭sedric


    It also depends on the link between loan and shares, the interest rate on "within shares " loans is usually considerably lower.
    There are other points e.g. your loan and shares are insured in the even of death , this can be an issue for dependent families.

    Generally as said before, credit unions are independent institutions whose accounts are audited separately, there is a max interest rate they can charge. ~12.68%


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