The 'It Makes Sense' Loan

This is an initiative aimed at those in receipt of social welfare, particularly those who may have used or considered using the services of a moneylender.

Applicants for this scheme do not already have to be members of the credit union. Once the person lives or works in the credit union’s common bond area, the credit union can process their membership application and then accept the person’s application for the “It makes sense” loan. As with any loan scheme, potential borrowers must be able to show a capacity to repay the loan and the final lending decision will rest with the local credit union.

The scheme is currently available in credit unions.

Compared to moneylender rates, its relatively inexpensive at a maximum rate of 12%.

Am I Eligible?

The scheme is being made available in participating credit unions across the country and is open to those in receipt of social welfare who are over 18 years of age. Being in receipt of social welfare does not entitle a potential borrower to a loan. The decision to grant a loan remains with the credit union.

To join a credit union, you need to live or work in the local area.

For those who receive their social welfare payment (at a post office), the repayment for this loan must be made via the Household Budget Scheme, which is run by An Post. Borrowers must be willing to sign up to and use the Household Budget Scheme to enable loan repayments to be made.

For those who receive social welfare electronically (into a bank or credit union account), repayments for The “It Makes Sense” Loan must be made by standing order or direct debit, directly from the account which receives the social welfare payment.

What Can The Loan Be Used For?

The loan can be for any purpose including to repay an outstanding debt and can be approved quickly. Loans can be granted quickly after making the loan application. As with any loan scheme, potential borrowers must be able to show a capacity and willingness to repay the loan. The minimum loan amount is €100 and the maximum amount which can be borrowed under this scheme is €2,000. Some credit unions only offer a certain loan amount such as €500. Please discuss this with your local credit union.

How Do I Apply?

You will need to join your local credit union before applying. The credit union will fast-track your membership and you can then apply for The “It Makes Sense” Loan. To join a credit union, the credit union will ask you to verify your name, address and PPS number. You need to show:

· Proof of identity – For example a current passport or driving licence.

· Proof of address – For example, recent Government issued documentation or a recent household bill.

What Documents Do I Need To Apply For The Loan?

For those who receive social welfare at a Post Office, they will need to produce, at a minimum, two consecutive social welfare slips (dated within the previous four weeks). Some credit unions may ask for more.

For those who receive social welfare payments into an account, they need to bring two recent consecutive bank or credit union statements (from the account into which the payment is received). Some credit unions may ask for more.