Credit unions extend loan terms

CREDIT unions should be able to offer longer term loans to customers according to a report from the Department of Finance.

The country’s 490 credit unions are restricted under Section 35 of the Credit Union Act from having more than 20% of their total loan book out for more than five years.

This has prevented many credit unions from offering longer-term personal loans and mortgages. Since 2000, the asset bases of all credit unions has doubled but their share of the loan market has fallen from 8.9% to 5.5%.