Munster Express Online

As anyone who has sought a mortgage over the past couple of years can attest, you need to be able to jump through some very tight, fire-lit hoops to secure a homeloan. Now it seems, even that precarious hoop has been yanked away…for people who have been turning to their local credit union for financial assistance.
The decision by the Central Bank to impose new lending rules on nearly 300 (of the 409) credit unions means that perhaps seven out of 10 CU members will have their request for a loan turned down this coming year.

In light of the high rate of repayment arrears throughout the credit union network – at about 14% of outstanding loans – limits as low as €5,000 are being imposed on individual lenders in some CUs, which might be enough to buy a second hand car, or a new bathroom, but isn’t going to go very far if you have a start up business and desperately need some capital to invest in new stock or fund a export drive.