Loans FAQs
In order to borrow from DCU, you must be a member. However, you can make a loan application on the same day as joining, just make the staff member aware of it. Please note that the initial loan assessment may include a request for credit report and access to at least 3 months of your bank statements to establish repayment capacity.
No, the maximum amount you can borrow unsecured with DCU is £20,000 above the level of your savings with us. As our maximum savings cap is £15,000, we can offer unsecured loans up to £35,000.
The funds in your regular shares may be used as security against any loans issued. Easy Shares is a separate account that can be accessed at any time and not pledged against any loan and this account enables members to save for any occasion and budget more effectively.
DCU adds interest to your loan on a daily basis and this is calculated on a reducing balance. So, as your loan balance falls, the amount of interest you’re paying back also reduces. There are no early repayment fees or charges with DCU.
The loan interest rebate is another way we like to give back to our members. This is an extra benefit to our borrowing members. As borrowing is the life blood of the Credit Union we deeply appreciate our members who turn to us for their borrowing needs.
The loan interest rebate is a percentage of the interest paid by the borrowing member, which is given back to them at the end of the year from the surplus of income. The percentage is announced each year at the AGM and is then paid into the members’ savings accounts the following morning. Another great reason to come to us for lending!
Interest rebates do not apply to Tier 2 & 3 Loans due to the reduced interest rate.
* It is important to note both dividends and interest rebate payments are dependant on our financial performance throughout the year and are not guaranteed. An interest rebate will be calculated on loans < £7,499.
In 2022 we paid a rebate of 30% (for every £1 paid in interest; we will gave back 30 pence)
For loan enquiries, call us on 02887723729 or fill our loan enquiry form.
Loan Protection Insurance covers eligible loans at no direct cost to the member.
What are the benefits?
In the event of a Members death, outstanding loan balances are repaid in full, subject to T&Cs. Members can take out a Credit Union loan in the full confidence that their dependents will not have to pay the remaining loan off when they die.
Loans under £8,000 are automatically covered by Loan Protection Insurance. Loans over £8,000 may still be insured but will require the member to complete a health declaration. In the event that a member has medical conditions to declare which would affect the insurance offered, this information will be forwarded to ECCU for medical underwriting review by specialist doctors.
Please note that all loans issued by DCU must be insured. If cover is refused by ECCU, it may affect the loan decision. All loans must be paid in full before the Member’s 85th birthday.
Dungannon Credit Union Ltd may, in some instances accept/require guarantors for its borrowing members.
All guarantors should understand this is a legally binding agreement and they will be responsible for full repayment of the loan balance including interest and should be only entered into after careful consideration.
The Member should understand the full implications of requesting a guarantor.
Before accepting a guarantor, we will require evidence of income/outgoings in order to assess their ability to meet their commitment as guarantor.
Top up or additional loans
Top ups are available on existing loans provided:
• Affordability needs to be established.
• Interest due must be cleared on existing loan before new loan is issued.
If the top up amount brings the Member’s outstanding balance to a higher tier (See above for tiered rates). The new discounted rate will be applied to the total (outstanding balance) Member will only be entitled to the interest rebate on the Tier loan that has been cleared.
