AGM hears credit union loan book has doubled over the past five years
COMHARCHREIDMHEASA Chorca Dhuibhne Teoranta, who are celebrating 30 years in business this year, reported a continued growth in membership, savings and the size of the loan book at their AGM which was held in Benner’s Hotel last Thursday..
The Credit Union has grown from humble beginnings with just 11 members at the first meeting in the Presentation Convent School in 1990 to the present day membership of 4,500 with savings in excess of €16.75 million. Over 70 per cent of the local population now use the member-owned Credit Union for financial services.
The main income of the credit Union, similar to any financial institution, is generated through interest charged on loans to their members. But that is where the similarity ends. The Credit Union is a local institution owned and run by the people of the area.
“We understand people’s circumstances.” said Micheál Ó Cinnéide, Bainisteoir Comharchreidmheasa Chorca Dhuibhne, adding that the Credit Union facilitates the distribution of wealth in an area where “the local economy is thriving, particularly the tourism sector”.
The total amount of money on loan by the Credit Union has increased by 13 per cent since last year and has doubled over the last five years. The majority of loans are for home improvements and the purchase of second hand cars, and by far the greatest proportion of loans are for a term under five years. Recently the Credit Union offered a favourable interest rate on loans for home improvements that attract SEAi grants. However, Micheál said “the take up on this loan offer has been slow”.
The credit union lends money based on a borrower’s ability to repay the loan and they have honed their skills to such an extent that write-offs due to unpaid loans last year were only €1,400, a tiny fraction of the over €5.25million out on loan to members.
The Credit Union employs six people and is run by a board of volunteers who re-elected Brian Cotter as their chairperson on Thursday evening. Three people joined the voluntary governing board this year: Pádraig Ó Muircheartaigh from Cloghane, Nora Máire Ní Mhurchú and Caitlín Bn Uí Scanláin. Caitlín is one of the group who met in the Presentation Convent classroom 30 years ago to set up the credit union and through the years has held various positions on the board, mainly on the Oversight Committee.