For many of our members one of the main reasons they join Portadown Credit Union is to avail of our loans facility. Over the years, members have come to realise that Portadown Credit Union, when compared to other financial organisations offers a personal, flexible service at a fair rate of interest.
Our loans differ from others in a number of ways:
Never be afraid to apply for a loan; as your local lender we want to lend to as many people as possible. However, the most important factor for us when we are assessing your application is to make sure that you can afford the loan. We do this to protect you and to protect our other members, as after all, it is their money that you are borrowing. The majority of loan applications can be approved by our fully trained loan officers and you will receive an immediate decision. Although, if it is your first loan, for a large sum of money or there are concerns about how the account is being maintained, then the application will be referred to the Credit Committee.
The Special Credit Committee is a number of people made up from volunteers, management and the board. They meet up to assess applications. The Credit Committee is comprised of a group of volunteers who meet every Thursday afternoon to adjudicate on loans; each of these individuals have many years of Credit Union experience.
For first time borrowers and for certain loans, the Credit Committee may make the decision to only grant the loan, if a suitable guarantor can be assigned to the loan; this can be a family member or friend. If someone has asked you to act as a guarantor for them, please make sure you fully understand the commitment you are making.
Effectively, you are signing a legal document to say that if the individual defaults on their loan, you are willing to take responsibility for it. Consider long and hard as to whether you know this person will keep up repayments, even if their circumstances change.
Proposed guarantors have to complete a Guarantor Form which requires the disclosure of financial information. The proposed guarantor will also have to agree to be credit searched. Only when the proposed guarantor returns the Guarantor Form and Credit Committee has approved them, can the loan be paid out.
Guarantors should be aware that they have to provide proof of their income and consent to a Credit Search before they can be approved as being a suitable guarantor
Whenever you take a loan you sign a promissory note (a legally binding document) agreeing to pay off your loan within a specified period of time. The maximum period for most loans is 5 years, however some loans can be completed within a shorter period. We always recommend that member’s complete their loan as quickly as possible in order to minimise the amount of interest they pay.
We understand that circumstances can change that are out of your control, therefore, if something happens that affects your ability to meet your agreed repayments, it is crucial that you contact us to talk about your situation therefore we can work out a plan of action.
It is important to remember, that not paying your loan as agreed can impact negatively on your credit record.
