Credit Union loan...explain please?

redding

Hi everyone. My car is dying and my mother has kindly offered to take out a loan from her credit union to lend to me for the purposes of getting a decent motor.

She has about £1700 in savings, and what we hear is that she can borrow twice the amount. Thing is, we're not sure whether this means they give her £1700, or if they give her £3400.

She has been with the CU for over 10 years, never borrowed anything before and wants to lend me about £5000 so she wants to know what amount she should ask for (and the likelyhood of being accepted)

Can anyone help? We're in NI if that makes a difference.

Thanks!

rainbowfairydust

my understanding is that its double your savings (so if your mum has £1700) then the CU will loan you £1700..

Stuart_W

It depends on the credit union.

My credit union for example, www.rainbowsaver.co.uk, will lend up to five times the value of savings depending how long you have been a member, but do say that no loan is guaranteed and when there is high demand for loans, stricter limits are sometimes necessary.

Ask the credit union in question and see what they say.

Angiebaby

Many credit unions have now moved away from the "multiplier" to basing loans solely on the ability to repay. In addition, age sometimes does come into play as the age limit for insurance can vary from credit union to credit union. As has been previously stated, the best thing to do is ask..

Regards,
Angela Hampson
ABCUL and Glasgow Credit Union Director