Important Loan Interest Update

 

We’re changing the interest rate on loans

 

Over the last few years, rising interest rates and inflationary pressures have impacted households, businesses and the wider economy in the UK. Lurgan Credit Union is not immune to this impact and is facing ever increasing costs, mainly associated with maintaining the best service for our members.

 

The Board of Directors and Management of LCU regularly review the policies, products and services the credit union offers to ensure we remain competitive, relevant and attractive to our members. Having reviewed the current structure of our lending, and with much consideration given to alternative forms of credit, and the rising costs of delivering our services, Lurgan Credit Union will be introducing a change to the loan interest rate, effective from 10^th June 2024.

 

Your unwavering support of Lurgan Credit Union has enabled us to thrive, and become one of the largest credit unions in Northern Ireland. We are extremely proud to have such a committed and active membership, and we assure you that this decision was not taken lightly. It has been discussed by our Board of Directors at length, and we are confident that this will allow us to maximise the services we can provide to members whilst operating within the regulatory framework.

 

What’s Changing?

 

Lurgan Credit Union will continue to provide competitive and fair loan interest rates to our members in the current market.  The interest rate will increase from 7.5% APR to 12.68% APR.

 

What does this mean for my current loan?

 

These changes will take effect from 10^th June 2024 and will only apply to new or top up loan applications taken from this date. This means that if you have a current loan with Lurgan Credit Union or a loan that is already in process, the interest rate will remain unchanged for the duration of your agreed loan repayment term.

 

How do Lurgan Credit Union compare with other lenders?

 

We are confident that Lurgan Credit Union will remain competitive and will continue to be a valuable source of lending for many borrowers.  As the table below demonstrates, our rates still remain very favourable.

 

Provider	Personal Loan Amount	APR	Term	Monthly Repayment	Total Cost
LCU	£4,500	12.68%	5 Year	£88.98	£5,338.67
Ulster Bank	£4,500	21.90%	5 Year	£119.15	£7,149.00
Nationwide	£4,500	14.30%	5 Year	£103.41	£6,204.60
Danske Bank	£4,500	14.10%	5 Year	£103.00	£6,180.00

 

Figures correct as at 03/05/24.

 

 

Additional benefits when you borrow from LCU. 

 

All our loans will remain insured for eligible members and in the event of death will be cleared in full. This means that you can borrow freely from us without the additional worry of how family members will manage these commitments. This is at no cost to the borrower.  LCU is a not-for-profit lender, and where we can we return surplus funds to our members each year in the form of a dividend on savings and rebate on loan interest, reducing the overall cost of borrowing with LCU further.