For Loan FAQs click here.

Loan Applications

The Credit Union will consider loan applications from members for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits. It is credit union policy to meet the borrowing requirements of as many members as possible, depending on the available funds.

Applications for loans are made on a standard loan application form. Loans can be applied for by calling to our office. Our staff will give you any assistance required. Loans will then be considered by a Loan Officer.

What you need when applying for a loan

In deciding whether or not to grant the loan the loan officer will take into account the members record of savings and loan repayments, as well as ability to repay. Evidence of income ie payslip or if self employed, set of financial statements etc is required when making a loan application. Once the loan is granted the member will be asked to complete a credit agreement, which is a legally binding document being a promise to repay the loan, and to commit to regular repayments.

Remember – only members are eligible to receive loans from your credit union and photographic ID is required when collecting your loan.

Planning and managing repayments

Credit unions are flexible with regard to repayment plans, though there are some legal limitations to length and amount of loans. The member will be advised on the best repayment plan to meet their own circumstances. Members are generally advised to repay a loan in as short a time as possible. 5 years is currently the maximum loan term. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the credit union, which will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan will be renegotiated if possible.

There are no penalties associated with clearing your loan quicker than agreed.

Interest on credit union loans

By law credit unions cannot charge any more than 1% per month on the reducing balance of a loan. This represents an interest rate of 12.68% APR (Annual Percentage Rate). Credit unions do not charge fees or transaction charges. The Credit Union is currently offering competitive rates. View our loan calculator to see how reasonable a credit union loan could be. We also have regular promotional rates of interest. Since the interest is charged only on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned.

Irish Credit Bureau

St Colmcille’s (Kells ) Credit Union have now joined the Irish Credit Bureau.  The latter (ICB) is the principal credit reference agency in Ireland.

What is the Irish Credit Bureau?

the Irish Credit Bureau (ICB) is the principal credit reference agency in Ireland and was established in 1965 by a number of financial institutions.  the objectives of ICB are :-

  • To assist in lowering the cost of credit
  • To enable faster decision making in the provision of credit
  • Aid in the avoidance of over- indebtedness of its member’s customers.

Over 40 financial institutions , mostly banks, building societies and finance companies are members of ICB.  Credit Unions were granted membership in June 2004.

Why has the Credit Union joined ICB?

The Board of Directors has a responsibility under Credit Union and consumer credit legislation to safeguardthe assets of the Credit Union and to ensure that members do not become over-indebted.  this means minimising bad debts and other costs of credit and ensuring that as much information as possible is obtained to assess a member’s ability to repay a loan.

What information does ICB hold?

Most lenders in Ireland send information about borrowers and their repayments to a central agency, ICB.   The ICB holds information about borrowers and their loans for 5 years after the loan is cleared.  This information is held in an individual credit record that is kept by the ICB about each borrower.  Your credit record includes:

  • Your name, date of birth and address
  • The names of lenders and account number of loans you currently hold, or that were active within the last 5 years.
  • Repayments made or missed for each month of each loan.
  • The failure to clear off any loan.
  • Loans that were settled for less than you owed.
  • Legal actions your lender took against you.

So , the ICB reflects a full picture of your credit history, good or bad.

Is my lender allowed to check my credit record?

When you sign a mortgage or loan application, you will be asked to sign a Consent Form.  This form gives the lender permission to seek information about your credit history from ICB and to send information about you to the ICB.

What type of lenders send information to the ICB?

Lenders send information about borrowers who have mortgages, car loans, personal loans, credit cards, leasing and hire purchase agreements.

What information is available to the Credit Union from ICB?

Details of current borrowings and loans that have been repaid or closed in the last 5 years for all ICB members are shown in response to an ICB enquiry.  Details include the loan amount, category and repayment history.  The database also shows “footprints” of enquiries made by the ICB members in the previous 12 months.

What information is available to ICB from the Credit Union?

The Credit Union provides the same information to ICB and other ICB members.  This does not extend to loans taken out or repayment histories prior to the credit union becoming a member of ICB.  However, where a loan incorporates an existing loan(ie. a top-up), the new balance is the figure disclosed to ICB.  Confidentiality and disclosure of your personal information is subject to the Data Protection Acts 1988-2003 and the Credit Union act 1997.

Will ICB affect my ability to get a loan?

The main factor in determining whether a loan is granted is your borrowing and repayment history with the Credit Union.  In common with other lenders, the Credit Union may request information about your income, employment status, living costs and existing loan repayments to help decide whether you can afford to repay a loan.  An ICB enquiry is another source of information relevant to lending decision.

How do i see my credit history?

You can get a copy of your credit by completing and signing an application form which is sent to the ICB, with a fee of €6, payable by bank draft or postal order only.  One form should be completed per person and contain a contact telephone number.  Please refer to Credit Union staff for application forms.

Why Our Loans are Better

With the uncertainty in the financial markets causing a stir amongst the banks, Kells Credit Union remains steadfast in their quest of providing low cost loans to members with no hidden fees or charges and additional benefits you won’t get anywhere else!

Our loan interest is calculated to your advantage

Most financial institutions calculate the interest due at the start of a loan. This means that even as you reduce the size of your loan, your interest will remain the same throughout. With your credit union, your interest reduces as your loan reduces. With additional repayments or early clearance of a loan, you pay even less interest! Some financial institutions penalise you for lump sum repayments for clearing your loan early. WE DON’T! Since Oct 07, loan interest is calculated on a daily basis. This is also in the best interest of you our members.

No fees, charges or penalties

Your credit union has no document fees, arrangements fees, facility fees, rescheduling fees or any other fees on loans. We don’t penalise you for clearing your loan off early either! With other financial institutions you need to read the small print because quite often there are extra fees and charges on their loans. Sometimes the following warning appears “You may have to pay charges if you pay off a fixed-rate loan early”. These fees, charges and penalties can mean a great difference in the amount you actually end up paying. Your credit union is different. What you are quoted is what you pay! Don’t be afraid to ask for the total cost of your loan so that you can compare our loans against other loans and remember you can reduce the interest you pay your loans by making additional repayments or by clearing your loan off early (with no penalties!).

Your loans die with you

Your credit union provides Loan Protection Insurance * on the lives of its eligible borrowing members at no extra cost providing you were in good health when taking out the loan. Should an insured borrower die or become totally and permanently disabled, the insurance cover provides that the loan balance will be fully cleared *. With other financial institutions this type of insurance usually costs extra.

Other Insurance products that add value!

Life Savings Protection Insurance * – Your savings are insured for life at no extra cost. Depending on your age and how much you have saved with your credit union over the years, this insurance could provide your dependants with up to €12,700 * on your death.

Repayment Protection Insurance * – This low cost insurance covers your repayments in the event of accident, sickness, redundancy or if you are self – employed, critical illness. This is an optional extra, which could give you peace of mind.

For all your loan requirements, check out Kells Credit Union first! Loans and Insurance Products are subject to certain terms and conditions. Kells Credit Union is regulated by the Central Bank of Ireland.

Central Credit Register

Central Credit Register (the Register) is a new centralised system for collecting personal and credit information on consumer loans.

The Central Bank of Ireland is in charge of operating the Register as set out under the Credit Reporting Act 2013.

From 30 June 2017, the Register will begin collecting and storing personal and credit information from lenders about the loans they give to consumers.

Lenders who give out loans of €500 or more will have to transfer information on these loans to the Register.

The Register will not collect information about smaller loans of less than €500.

The Register will initially include information on loans such as credit cards, overdrafts personal loans and mortgages.

In time, information on other types of lending, such as hire purchase agreements and personal contract plans, will also be included.

Reason for the Register

The Government agreed to establish the Register as part of the EU/IMF Programme of Financial Support for Ireland.

The information collected will help lenders, consumers and the Central Bank in its role of safeguarding stability and protecting consumers.

Lenders will be able to use the information to get a more detailed picture of a consumer’s credit history, which will help them to make decisions about loan applications.

Consumers will have the opportunity to see what credit information lenders hold about them.

Credit reports

It is expected that consumers and lenders will be able to access the information in the form of a credit report from early 2018.

You will have the right to request your credit report at any time, and the first report each year is free of charge.

Only a consumer or a lender can request a credit report.

Each request will be recorded as a “footprint” so you will know who has looked at your credit report.

Further information

You can find out more about the Register at www.centralcreditregister.ie

Alternatively you can contact St Colmcilles (Kells) Credit Union on 046 9240299