Q on Credit Union & borrowings

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71mark71

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any rough idea how much interest rate credit unions charge & can you get a 10 year loan?

do you have to have existing savings & if so, would a lump sum suffice or do they require regular savings

also what multiple of borrowings verses savings do they typically offer
 
Credit unions are all seperate from each other so different rates and policies apply.

Credit unions are restricted from longer term lending by regulation. 5 years is the cap on the vast majority of their loans. There interest rates generally are in the 7% or 8% region.

Most credit unions operate on a rule of thumb basis that requires a new member to save consistently for a period of 12 weeks before applying for their first loan.

The multiple of borrowings versus savings is usually in the 2:1 scale for the first loan. Again this is a rule of thumb. Credit union borrowers with a borrowing history can get different multiples depending on their personal circumstances.

These restrictions are general rules. A credit union can deviate from these policies depending on your job security, income, credit rating, and reasoning for the loan.
 
my experience, they do 10 year loan, however I went for 5 years when I saw interest amount, borrowed €40000, paying back €53000 interest 12.?? percent. Have to leave €5000 in the account in order to draw down the loan.
 
my experience, they do 10 year loan, however I went for 5 years when I saw interest amount, borrowed €40000, paying back €53000 interest 12.?? percent. Have to leave €5000 in the account in order to draw down the loan.

Credit unions are restricted to the amount of 5+ year loans on their loan book.

12% seems quite excessive in that calculation. Over 10 years at say 7.5%, the pay back amount would be around 56k.
 
any rough idea how much interest rate credit unions charge & can you get a 10 year loan?

do you have to have existing savings & if so, would a lump sum suffice or do they require regular savings

also what multiple of borrowings verses savings do they typically offer

The rates vary and the max. rate is 12.68%. Some are as low as 7%.
You can get a 10 year loan, but probably not for a car. They can only issue a certain percentage of all loans over 5 and 10 years.
Regular savings preferred. Lump sum looked on with suspicion. Multiple of savings normally required to be built up, but you could start with 3 or 4 and build up to as much as 10.

Best to talk to your preferred CU.
 
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