Credit Unions Allowed more Long Term Loans

In amongst all the news about NAMA and bad banks – we have a bit of slightly better financial news. Yesterday the Dept of Finance announced that Credit Unions will be allowed to have a bigger percentage of their loans lasting five years or more. Under current rules  –  a maximum of 20% of a credit union’s loan portfolio may be outstanding for periods in excess of five years, and only 10% of the loan portfolio may be outstanding for periods exceeding 10 years.
The  amendment to Section 35 of the Credit Union Act 1997 will extend the lending limit for loans over five years from 20% to 30% for all credit unions.
This should make more money available to Credit Union customers in Ireland – and hopefully at interest rates that are lower than bank loan rates.