Credit Union Loan Rates

As credit unions are independent from each other, each credit union sets its own loan interest rates. The maximum rate which a credit union in the Republic of Ireland or Northern Ireland is permitted to charge is 12% (12.68% APR), but in practice credit union loan rates tend to be significantly lower than this.

For financial year end 2017 (September 2017), credit unions affiliated to the the Irish League of Credit Unions in the Republic of Ireland had an average standard loan rate of 10.56% APR. 

In addition, many credit unions offer special interest rates for particular categories of loans, which tend to be significantly lower than standard rates.

  • For credit unions in the Republic of Ireland with a dedicated car loan rate*, the average loan interest rate was 7.77% APR. The lowest car loan rate was 5% APR.
  • For credit unions in the Republic of Ireland with a dedicated home improvement loan rate*, the average loan rate was 7.56% APR and the lowest rate was 4.33% APR.
  • For credit unions in the Republic of Ireland with a secured loan rate* (the loan amount is less than shares held), the average loan amount was 6.02% APR and the lowest rate was 2.02% APR.
 

Loan Interest Rebate - You get it back!

As well as offering very competitive loan rates, many credit unions give a loan interest rebate to members. This means that members get a refund of some of the loan interest which they paid during the year. 

For the financial year ending in September 2017, 72%** of credit unions in the Republic of Ireland gave a loan interest rebate to their members, with the average loan interest rebate being 10.2%.  

 

Cost of Credit Examples

 

Loan Amount

Variable Rate

Term

Monthly Repayment

Total Repayments

€3,000 10.56% APR 3 years (36 monthly repayments) €96.91 €3,488.94
€3,000 7.7% APR 3 years (36 monthly repayments) €93.24 €3,356.48
€3,000 7.56% APR 3 years (36 monthly repayments) €93.06 €3,350.04
€3,000 6.02% APR 1 year (12 monthly repayments) €258.01 €3,096.07
€3,000 5% APR 3 years (36 monthly repayments) €89.76 €3,231.54
€3,000 4.33% APR 3 years (36 monthly repayments) €88.91 €3,200.61
€3,000 2.02% APR 1 year (12 monthly repayments) €252.72 €3,032.60


* This data was provided to the ILCU by its affiliated credit unions in the Republic of Ireland. It relates to financial year end September 2017.
** Financial Conditions of Credit Unions 2013 - 2018, Central Bank of Ireland (August 2018)
Loans are subject to approval. Terms and conditions apply. If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating which may limit your ability to access credit in the future. Credit unions in the Republic of Ireland are regulated by the Central Bank of Ireland. Credit unions in Northern Ireland are authorised by the Prudential Regulation Authority, and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.