Overview
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 new loan scheme, aimed specifically at those in receipt of social welfare, is being introduced. 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% (12.68% 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 might charge almost 10 times as much as a credit union. In this example, with an It Makes Sense Loan, a borrower will save more than €134.16 or more than €5 per week.
| For a €500 loan | APR | Term | No. of repayments | Weekly repayments | Interest charged | Total repayment |
| Sample Moneylender Loan* | 187.2% (fixed) | 6 months | 26 | €25 | €150 | €650 |
| Credit Union The "It Makes Sense" Loan | 12.68% (variable) | 6 months | 26 | €19.84 | €15.84 | €515.84 |
Information correct as at 2nd July 2016. * Source – Central Bank, Register of Moneylenders