Tel: 01 868 0844/ 01 868 0845 Email: info@aughrimstreetcu.ie
What is the ‘It Makes Sense’ Loan?
A micro loan to members on social welfare
A cheaper alternative to a moneylender offering
A maximum loan amount of €2,000
Repayment via An Post’s Household Budget Scheme or by direct debit/standing order if social welfare is paid electronically to a bank or credit union account
Final credit decision rests with the Credit Union
How is it different to a 'normal' loan?
The potential borrower does not have to be an existing member – membership can be fast tracked
A savings history is not required
A default history does not exclude the member from applying for the loan
| Feature | Detail |
| Eligibility | Members or potential members who are over 18 years of age In receipt of a social welfare scheme payment Payment of social welfare can either be by cash or EFT to a credit union or bank account Where the person is in receipt of a cash payment they must qualify for deductions to be made through the household budget scheme Where payment is by EFT, the member must be willing to enter into a direct debit or standing order arrangement to facilitate repayment. |
| Member | Fast track membership if not a member Membership fee applies (unless waived by CU) Member Documentation as per existing Credit Union May not have a savings history May have a previous default |
| Loan Purpose | Any provident and productive purpose |
| Repayment Frequency | Weekly in line with the social welfare payment |
| Loan Amount | The maximum loan is €2,000 Suggested first loan of maximum €500 |
| Interest Rate | 1% per month (12% per annum, APR 12.68%) |
| Loan Top-ups | Except for exceptional circumstances, at the Credit Union's discretion, a member cannot apply for a top-up until at least 50% of the existing loan is repaid The original loan plus top-up will not exceed €2,000. Any top-up will be deemed a second loan for credit history purposes. |
| Number of Loans to member | A member can only avail of 2 PMC loans (including top-ups) In exceptional circumstances and at the Credit Union discretion, a third PMC loan may be granted Aim is to try and create a path to becoming a mainstream credit union member |
| Loan Term | Minimum one month, Maximum 24 months |
| Transaction Fees | No hidden Fees or Charges. |
