Credit unions loan €750m to customers

CREDIT UNIONS loaned three quarters of a billion euro last year to borrowers who couldn’t get the money they needed from banks.

Up to 12% of the voluntary movement’s business was generated by customers seeking loans at rates they could afford for financing community projects.

“This social financing makes much more projects possible for groups around the country and helps individual customers to improve their futures,” said Irish League of Credit Union’s (ILCU) chief executive Liam O’Dwyer.

Speaking on International Credit Union Day, Mr O’Dwyer said the low rate loans on offer from the country’s 532 credit unions meant lower-income people could also set money aside for savings.

People in debt also had a way out, he said, because of support via the Money Advice and Budgeting Service (MABS) which the credit unions offer.

“This is helping us to mark ourselves out as being quite different to other financial service organisations,” Mr O’Dwyer added.

Credit unions have given finance to a community centre in Co Monaghan, a local creche and playgroup in Co Wicklow and a soccer complex in Co Tipperary.

A Youthreach building was also constructed in Co Cork with finance from a local credit union.

ILCU said this approach to financing has led to continued growth in membership numbers and increased savings year on year. Mr O’Dwyer said financing community projects was also a potential further growth area.

A new village centre was built in the Ballybane area of Galway this year through a joint partnership between Galway City Council and the local St Columba’s Credit Union.

The 14,000 sq ft building will house a 15 unit enterprise centre for start-up entrepreneurs, retail units, a community garda office, a library, a credit union office and a multi-practice medical centre as well as 10 residential units.

“This is a great example of co-operation between the local community, the City Council and the Credit Union,” said Ciarán Hayes, Galway City council director of services.

In Ireland, over two and a half million credit union members have savings approaching €8 billion. There are over 15,000 active volunteers involved in the movement, and over 2,000 people are employed.