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Tel: 028 71 266738 Email:

Loans Loans

If you are eligible to borrow, it can make more sense to take a credit union loan rather than withdraw your shares. 

Benefits of borrowing from your credit union

  • When you take out a loan, you commit to making regular repayments.  By repaying your loan as agreed, you can build a good loan history with us.
  • You are expected to continue to save as you repay your loan.  Regular savings not only increase your shares, they also increase your borrowing potential.
  • Your savings remain intact which means they keep any Life Savings Insurance attached to them – terms and conditions apply. 
  • Eligible loans enjoy Loan Protection Insurance at no direct cost to you.  Loan Protection Insurance clears your loan balance in the event of your death.  Terms and conditions apply. 
  • Any interest rate rebate approved by the members at AGM will be applied to your account, effectively reducing the cost of your loan. 
  • There are no arrangement fees or penalties for large lump sum repayments or early repayment.
  • You can arrange to make your loan repayments and lodge your savings through standing order.
  • You can apply on-line or via our Phone A Loan Service (028 7126 7474).
  • We charge an interest rate of 1% per month on the reducing loan balance.
  • We offer a top-up loan service.

Loan Applications


Our Loan Policy governs every loan application.  Some of the elements of our Loan Policy are:

  • Minimum age:  You must be 18 years old or over to apply for a loan.
  • Maximum loan:  You can apply for a loan of up to £15,000 above the shares in your main account.
  • Character:  Your character – your savings and loan history – is your primary collateral.  By saving regularly and repaying each loan as agreed, you increase the likelihood of future loans.
  • Affordability:  You must be able to afford the loan.  We are a responsible lender.  We do not lend to members who will become over-indebted. 
  • Interview:  To establish that you can repay each loan you apply for, we conduct a loan interview.  We will ask you about your income and expenses.  We may also ask for additional information and documentation to further your application. We may also, with your agreement, carry out a credit reference check.
  • Loan purpose:  Your loan must be for a productive, provident purpose.  That means it must enhance the quality of your life.
  • Attached/pledged shares:  These shares are provided as collateral for the loan, the withdrawal of which require the approval of the Credit Committee while you still have a loan balance.

What are good reasons to apply for a loan?

The list is endless but some good reasons include:

  • a deposit for your home 
  • a new or second-hand car and associated costs, such as insurance or repairs
  • school uniforms and other educational expenses
  • wedding expenses -- for the bride, groom and parents
  • a holiday and holiday spending money!

Immediate Loan Status

Some established members may be eligible for ‘immediate loan status.’  While each loan application is different and is considered individually, immediate loan status members are normally those whose new loan will not exceed any previous ’loan to share difference,’ who is in good standing with the credit union, who can afford the loan, and who can meet all the other elements of our Loan Policy. 

For a range of reasons, many members are not eligible for Immediate Loan Status.  These would include new members, new borrowers, and members whose ‘loan to share difference’ will be taken higher than before.  These loans must go to credit committee.

When an application goes to Credit Committee

Credit committee is when three people, rather than one loan officer, consider a loan application.  Credit committee meets daily and members whose applications go forward to committee normally hear of the decision within 24 hours.

Reasons why some applications go to credit committee include:

  • when it is one of the member’s first three loans with us (because the member is still establishing his or her good character);
  • when the member’s loan to share balance will go higher than at any previous time;
  • when the member has been in arrears or is borrowing frequently; or
  • when the repayment period will be greater than five years.

Reasons why some loan applications are unsuccessful include:

  • when the member is in arrears or has a poor savings history with us;
  • when the member cannot afford the loan;
  • when the member is borrowing frequently or for necessities that he/she should be able to pay for without credit; or
  • when the shares to loan difference is going too high.

Sometimes credit committee will recommend a member postpone an expensive purchase until his/her loan balance reduces. 

Repaying and Saving

Members are encouraged and expected to save (no matter how little) while repaying their loans.

Maximum Loan

The maximum loan limit is £15,000 in excess of a member’s savings.  So, if you have £3,500 in your savings, you could borrow up to £18,500. All loans are subject to approval and comply with our Loan Policy.  Terms and conditions apply.  Remember, £15,000 above the shares in one's main account is the most a member may apply for.  Whether their application is successful will depend on their loan history/character, affordability, pledged shares, and loan purpose.

Low Interest Rate Loans

The interest charged on a standard Derry Credit Union loan is 12.68% APR or 1% per month on the reducing loan balance.

The interest charged on a PLuSS Loan (see below) is 7.44% APR or 0.6% per month on the reducing loan balance. 

The rate of interest in Derry Credit Union has remained unchanged since its formation, no matter how often the bank rates and other financial institutions’ charges have fluctuated.

There are no charges whatsoever for operating your account in Derry Credit Union.

The PluSS Loan

PluSS is a ’covered by shares’ loan.  Eligible members can enjoy all the benefits of our standard credit union loan but at a lower rate of interest.

Eligible members are members in good standing who can afford the loan and who have sufficient shares in their main account equal to the capital plus interest due on the loan and are willing to pledge these shares against their PluSS loan for the entire term of the loan.  If you aren’t sure if you are eligible, stop by our office -- we’ll be happy to go through your borrowing options with you.

Benefits of the PluSS Loan include:

  • interest charged at 0.6% per month on the reducing loan balance or 7.44% APR
  • terms of up to 10 years
  • no arrangement fees or penalties for early or lump sum repayments
  • Loan Protection Insurance available on eligible loans at no direct cost to you
  • the interest rate rebate approved by the members at the AGM will apply to PluSS loans as well

Terms and Conditions:  a full set of the terms and conditions is available at Reception and in our Loans Department.  However, some of the key conditions are:

  • the minimum PluSS loan amount available is £100
  • the maximum PluSS loan amount is the member’s shares less the interest due during the term of the loan
  • loans must be repaid in full by your 80th birthday
  • you must have sufficient shares to cover the capital and interest due
  • you must pledge those shares against your loan for the duration of the loan
  • you must be able to afford the repayments
  • in the case of fraud or default, the Pluss Loan will be repaid immediately by the transfer of the pledged shares in the member’s main credit union account and, if necessary, the member’s Easy Shares sub-account. 


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.

Derry Credit Union Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Registered address: 7-9 Abbey Street, Derry BT48 9DN


Find Us here:
  • Derry Credit Union
  • Tel: 028 71 266738
  • Fax: 028 71 372144
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Derry Credit Union LImited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (FRN 574104)