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Financial Education

Credit Union Lending Limits May Increase for House and Business Loans

Proposals to increase lending limits for credit unions.

The Central Bank has recently announced a public consultation on proposals to increase lending limits for credit unions.

” The proposed changes will ensure the regulatory framework remains appropriate for the sector and will provide greater scope for those credit unions who wish to undertake further house and business lending. Analysis of lending data shows that, at a sectoral level, considerable capacity remains available for credit unions to provide house and business lending within existing limits.

However, having completed the review, and in order to enable the sector to sustainably develop in the long term interest of its members’, the Central Bank considers that a number of targeted changes to the regulations should be proposed at this time. The changes focus on concentration limits for house and business lending, and certain conditions attached to underwriting. The proposed changes are outlined in the public consultation, which will close for submissions on 11 February 2025.”

You can read more about this initiative here.

Credit unions are a valuable source of financing, particularly for individuals who faced financial challenges during the 2007 recession, which left many with negative equity or poor credit ratings. Learn more about the economic downturn and its effects here.

Many credit unions now offer mortgages, and there are several benefits to choosing one from your local credit union. For more details, visit the Credit Union’s blog here.

Credit Unions may be able to offer bigger business loans in 2025

If you’re planning to improve, repair, or extend your home but can’t secure a loan from your bank, the Local Authority Home Improvement Loan might be an option. This scheme is available through select local authorities, so check with your local office to see if it’s offered in your area. Further information can be found here.

For those receiving social welfare payments, the It Makes Sense Loan (or Personal Microcredit Scheme) provides low-interest loans through credit unions. This program aims to reduce reliance on high-interest moneylenders. Find out more here.

Finally, the best way to manage debt is to live within your means, avoid impulse spending—especially during the holiday season—and focus on growing your savings.