Credit Union Loan Rates (NI)
As credit unions are independent from each other, each credit union sets its own loan interest rates at local level. The maximum rate which a credit union in the Republic of Ireland or Northern Ireland is permitted to charge is 12% (12.68% Annual Percentage Rate), but in practice credit union loan rates tend to be significantly lower than this.
The Irish League of Credit Unions carried out research in August/ September 2022 into the loan interest rates charged by its affiliated credit unions in Northern Ireland. Below are the findings.
Personal Loans
The average rate charged by an ILCU affiliated credit union in Northern Ireland for a personal loan is 12.5% APR.
| Loan Amount |
Variable Rate |
Term |
Monthly Repayments |
Total Repayments |
| £3,000 |
12.5% APR |
2 years
(24 monthly repayments) |
£141.92 |
£3,406.13 |
Car Loans
The average rate charged by an ILCU affiliated credit union in NI for a loan to buy a car is 11% APR. This is based on an existing member buying a second-hand petrol car, with the loan repayable over 5 years.
| Loan Amount |
Variable Rate |
Term |
Monthly Repayments |
Total Repayments |
| £10,000 |
11% APR |
3 years
(36 monthly repayments) |
£327.39 |
£11,785.92 |
Home Improvement Loans
For a loan for home improvements, the average rate charged by an ILCU affiliated CU in NI was 10.8% APR. This is based on a £20,000 loan to fund a kitchen extension, with the loan repayable over five years.
| Loan Amount |
Variable Rate |
Term |
Monthly Repayments |
Total Repayments |
| €20,000 |
10.8% APR |
5 years
(60 monthly repayments) |
£432.86 |
£25.971.31 |
Holiday Loans
For a loan for to pay for a holiday, the average rate charged in ROI was 12.5% APR. This is based on a one-year loan to an existing member to fund a holiday.
| Loan Amount |
Variable Rate |
Term |
Monthly Repayments |
Total Repayments |
| £1,000 |
12.5% APR |
1 years
(12 monthly repayments) |
£89.08 |
£1,069 |
Education Loans
For an education or student loan, the average rate charged was 12.5% APR. This is based on a £3,000 loan to fund third level education, repayable over 3 years.
| Loan Amount |
Variable Rate |
Term |
Monthly Repayments |
Total Repayments |
| £3,000 |
12.5% APR |
3 years
(36 monthly repayments) |
£100.36 |
£3,613 |
The loan rate data was taken from an analysis carried out by the Irish League of Credit Unions (ILCU) of its affiliated credit unions from 1st August 2022 to 30th September 2022. In total, rates from 637 ILCU affiliated credit unions in the Northern Ireland were analysed. For information on the rates charged by credit unions in the Republic of Ireland, please click here.
Please note, this data is provided for illustrative purposes as a guide to the average loan rates charged by ILCU affiliated credit unions. Each credit unions sets its interest rates at local level. In some instances, credit unions may offer discounted rates for certain categories of borrowers (e.g. first-time borrowers). A member should always check with their local credit union to determine the relevant loan rates.
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.