Borrowing Money Responsibly
Secured Loans from Dundalk Credit Union
A secure/covered loan offers several benefits, particularly in the context of share and loan protection insurance and discounted loan interest rates:
1. Discounted Interest Rates
Secured loans come with a discounted interest rate compared to unsecured loans. This means that by securing your loan against savings or other assets, you benefit from paying less in interest over the life of the loan, making it more affordable and cost-effective.
2. Share & Loan Protection Insurance
Dundalk Credit Union provides share protection insurance of up to €5,000 at no additional cost to members. This insurance ensures that in the event of the member's death, their savings, up to the insured amount, is paid out to the nominee with an additional insurance benefit. This offers peace of mind to both the borrower and their family, reducing the financial burden during difficult times.
In addition, in the event that the deceased member had an outstanding loan balance, the credit union's loan protection insurance ensures that this loan is cleared in full at no liability to the deceased member's estate.
Members are not charged for either share or loan protection insurance. This is a valuable benefit, as similar insurance coverage from other financial institutions might incur additional fees.
3. Increased Borrowing Capacity
Securing a loan against your savings increases your chances of loan approval and may allow you to borrow a larger amount. This is because the credit union has collateral to cover the loan, reducing their risk.
Loan approval is also instant as no supporting documents are requested, thereby speeding up the lending process.
In summary, securing a loan from Dundalk Credit Union provides financial advantages such as lower interest rates, enhanced borrowing capacity, and peace of mind through share protection insurance, all while supporting a community-based financial institution.
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Nominations in the Credit Union
In Dundalk Credit Union, a nomination is a legal mechanism that allows members to designate a specific person or persons to inherit their credit union assets upon their death. This process is straightforward and offers several benefits:
Nomination Form
To make a nomination, a member fills out a nomination form provided by Dundalk Credit Union. In this form, the member names the person(s) they wish to receive the funds in their account upon their death. This can include savings and other balances held with the credit union.
Your credit union nomination supersedes a will. This ensures that the funds are transferred directly to the nominee(s) without the need for probate or legal disputes.
Limitations on Amount
There is a statutory limit on the amount that can be transferred through a nomination, typically up to €23,000. If the balance exceeds this amount, the excess is handled according to the deceased member’s will or the rules of intestacy if there is no will.
Impact on Estate Planning
Since the funds are transferred directly to the nominee(s), they bypass the often lengthy and costly probate process. This can provide financial support to the nominee(s) quickly after the member’s death.
In summary, a nomination in Dundalk Credit Union is a simple yet powerful tool that ensures a member’s credit union assets are quickly and efficiently transferred to their chosen beneficiaries after their death, offering convenience, legal certainty, and peace of mind.