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Overview - 'It Makes Sense' Loan

There are times in life when you need to borrow. When something unexpected happens and you need a loan in a hurry. If you are in receipt of social welfare, you may think that you have no other option than to turn to a moneylender. But there is another option. Your local credit union.

A loan scheme, aimed specifically at those in receipt of social welfare, is available. The loan is called The “It Makes Sense” Loan and it is available in participating credit unions across the country.

Say goodbye to expensive loans from moneylenders and say hello to a lower cost loan at a maximum of 12% (12.74% APR).


Loan Comparison

So how does this compare to the interest rate which may be charged by a moneylender? Using an example of a loan for €500 repayable over 6 months (see below) a moneylender could charge more than €130 more than a credit union.

For a €500  APR Term No. of  Weekly  Interest  Total 
loan     repayments repayments charged repayment
6 months 26 €25.00  €150  €650 
Credit Union
- The "It Makes Sense" Loan**
6 months 26 €20.00  €16  €516 

*Source Central Bank Moneylender Register March 2022. 

About the Scheme

The “It Makes Sense” Loan initiative was rolled out nationally on the back of a successful pilot run between November 2015 and May 2016.

The initiative is the response from credit unions and a number of stakeholders to the growing money lender problem in Ireland. All of these stakeholders are committed to putting a sustainable low cost credit solution in place for those who rely on social welfare.

The initiative is backed by numerous stakeholders committed to its success:
• Department of Social Protection
• Department of Finance
• Central Bank: Registry of Credit Unions (RCU)
• Irish League of Credit Unions (ILCU)
• Individual credit unions
• An Post
• Social Finance Foundation
• Citizens Information Board
• St Vincent de Paul (representing NGOs)

More Information

For additional information on this scheme, please contact your local credit union.