How are loans applied for and how much can be borrowed?

A loan application form is completed, requesting personal details to establish the ability of the borrowing owner-member to repay the loan.

Many credit unions have an “on-line” facility available to owner-members, using a personal identity number to apply for a loan remotely and in private. An owner-member can apply for a loan from the credit union for any “prudent and provident” purpose, and that includes a business purpose.

As part of the loan application, most credit unions have the right to carry out consumer credit searches on loan applicants. Every loan application made by an owner-member is underwritten (considered) by the credit union management; assistance and further information (not advice which is a regulated activity) can be given to the applicant. Sometimes, more assurances are required from the owner-member before a loan is granted. 

Obviously, this treatment of every loan application is fair as the credit union has a duty of care when lending out the savings of the other owner-members to ensure that the borrower can repay the loans in full, by instalments and on time.