You can borrow for almost any purpose and a variety of variable interest rates are available, dependant on the purpose, security and duration of the loan.In general the period over which a loan is to be repaid is 5 years, although in certain circumstances that can be extended to ten years. Bear in mind that the longer the term of the loan the greater will be the amount of interest payable. However, there are no penalties for early repayment of loans.
Where there is an existing loan and a top up loan is required, the general rule is that the new loan must be repaid by the maturity date of the existing loan. Where this might cause hardship, alternative repayment periods will be considered.
The purpose of the loan will often logically dictate the term of the loan. Borrowing for an annual holiday, for annual insurance, for motor tax, are examples of loans expected to be repaid within 1 year.
The current loan rates available are:
- 10.5% General Purpose (APR 11.03%)
Normally repayable in 1 to 5 years, although can be extended to 10 years. The purpose of the loan can be anything from weddings to funerals, communion to confirmation, holidays to hobbies, home improvements to household bills, insurance to car repairs, dental to medical, debt consolidation to practically anything.
- 7.50% Education (APR 7.78%)
Repayable over up to 8 years. This product is aimed at the student attendind third level education and is normally drawn year by year as the course progresses, but the loan repayment remains relatively constant throughout the term of the loan. This rate is also available to post graduate students.
- 8.45% Car (APR 8.77%)
Repayable over a maximum of 7 years and can be used to finance the purchase of a new or secondhand car.
- 5.50% Share Guaranteed (APR 5.66%)
Repayable over 5 years. This product is available to members who wish to borrow up to the value of their savings whilst leaving those savings intact, thereby availing of the benefits of both the free life savings insurance and loan protection insurance.