Before taking out a loan of any kind, its worth taking the time to understand how lending works. That way you can compare the benefits and be aware of the risks.
Here are some of the features that make a Credit Union loan different:
- There are no hidden fees or transaction charges.
- Credit Union interest rates are fair and reasonable and capped by law.
- Interest is calculated on your reducing balance, so you pay less interest with each repayment.
- Once you are eligible for a Credit Union loan, repayment terms can be designed around your needs.
- Your Credit Union loan is insured- subject to terms and conditions, at no direct cost to you. Other lenders charge for this.
- You can pay off your loan early, make additional lump sum repayments or increase your regular repayments, without a penalty.
- Other lenders may charge you extra for paying them back faster.