Cavan Credit Union issues €2.5M in car loans in just six months
Cavan Credit Union issued €2.5M in car loans over a six-month period, showing the continuing popularity of financing your new car through your local credit union.
Speaking to The Anglo-Celt, Therese Conway, CEO of Cavan Credit Union, outlined: “Our financial year starts on the first of October and, by the end of March, halfway through the year, we had lent out €2.5 million in car loans. Our overall loans have increased by €1.7 million on the previous financial year, which clearly indicates that more and more people are turning to Cavan Credit Union for their lending needs."
She's highlighting the many benefits of opting for a credit union loan rather than other forms of finance such as Personal Contract Plans (PCPs) and Hire Purchase (HP) where you don't own the vehicle until your last payment is made.
Interest rates are also attractive. For example, Cavan Credit Union's standard car loan rate is 9.9% (APR 10.35%). If you are borrowing in excess of €20,000 for a car, a reduced rate of 8.5% (8.83% APR) applies. This means that a loan of €20,000 over five years, costs €410.33 per month and the total cost of credit paid is €4,619.84.
There are several ways in which members can apply for car loans at Cavan Credit Union including in-person and online.“We also have a new user friendly App, if members want to download it from the App store by searching Cavan CU. Members using the Cavan CU App can apply for a loan through the App,” highlighted Ms Conway.
“For our members who can’t make it in to the credit union, you can now do the whole process from applying for the loan to drawing it down online, through our website or our Cavan CU App. For non-members, applying for membership is easy and straightforward. It can be done by coming into the office or uploading your documentation through the website,” she continued.
Ms Conway further told the Celt that car loans, like all loans with the credit union, have the benefits of flexibility on payment and no penalties for early repayment .
“One query we also get in particular is whether the benefit of having your credit union loan insured in the event of your death, at no extra cost, covers all loans regardless of the amount. The great news is that it does. There are some age caveats at over 70 years of age, and general health requirements, however it is a wide ranging insurance benefit, which we will happily go through on an individual basis with anyone enquiring.
"The insurance on Credit Union loans gives people great peace of mind, especially with a large loan, to know that they will not be leaving loved ones with a large loan balance to be repaid. This is a great comfort to our members”.
The CEO ended by saying: “What I would say to anyone thinking of borrowing to buy a car is contact us at the credit union and we will be delighted to go through the options available to you”.