Have you checked the ? Some CUs offer competitive loan rates but bear in mind that any APRs quoted do not include the cost of keeping money on deposit/in shares while borrowing as many CUs will require. In some cases using the money that would be otherwise on deposit/in shares to reduce your borrowing requirements and borrowing elsewhere could be better value for money. Presumably you mean an unsecured loan since loans secured on an asset (usually property) will be lower cost than unsecured loans. How much are you looking for, for what purposes and for how long?
Is that 12.6% APR? Doesn't sound great to me. Why not use the €1,300 to reduce your borrowing requirements and borrow €2,700 elsewhere possibly at a much lower rate and/or for a shorter term? Shop around.
CU loan rates often involve a certain amount of smoke and mirrors. All this stuff about having to hold money in shares/on deposit, having standard rates and then (possible/end of year) interest rebates is unnecessarily confusing. If they simply quoted APRs that reflected the total cost of borrowing (including keeping money tied up at the same time) then it would simplify matters no end. I presume that the CUs have no ulterior motive in preventing consumers from comparing the cost of their loans with those from other institutions on a like with like basis? Having said that, if you know that you can get the best rate from your CU then by all means go for it.
So would I be better to borrow the difference between the loan and shares elsewhere (4,500 euro) and pay off the difference between them? Anyone been in this situation before? Seems a bit mad to be paying interest on 11,000 when there is 5,500 just sitting there!