Credit Union Loan - Wee bit confused

AdviceSought

I have some savings and a loan with a Credit Union.

I wanted to transfer some money from my savings to the loan to reduce the balance, roughly by two months worth of payments.

I've been told this is not possible as to transfer as to do so, my savings balance needs to be greater than that of the outstanding loan balance.

This seems pretty strange to me...

Fruit_and_Nut_Case

AdviceSought wrote: »

I have some savings and a loan with a Credit Union.

I wanted to transfer some money from my savings to the loan to reduce the balance, roughly by two months worth of payments.

I've been told this is not possible as to transfer as to do so, my savings balance needs to be greater than that of the outstanding loan balance.

This seems pretty strange to me...

Perhaps the system worries about the few milliseconds where the money comes out of your savings account but hasn't yet arrived at your loan account.

SnowTiger

AdviceSought wrote: »

I have some savings and a loan with a Credit Union.

I wanted to transfer some money from my savings to the loan to reduce the balance, roughly by two months worth of payments.

I've been told this is not possible as to transfer as to do so, my savings balance needs to be greater than that of the outstanding loan balance.

This seems pretty strange to me...

Although almost entirely geared to lending, some credit unions like to encourage saving.

IIRC there was a similar case to this here.

Someone borrowed money from their Credit Union, intending to use the loan and their savings with the Union to pay off other debts. The T&C's of the Union prevented them from withdrawing their savings. The savings, in effect, guarantee part of the loan.