The Minister for Employment Affairs and Social Protection, Regina Doherty T.D. is delighted to announce that Credit Unions will no longer have to pay the 25 cent charge per transaction to An Post for access to the Household Budget (HB) for members availing of the 'It Makes Sense' (IMS) loan under the Personal Micro Credit Initiative.
Minister Doherty said,
Administrative arrangements have been agreed with An Post with a start date of 3 January 2020. As well as reducing the monetary costs to Credit Unions, the new arrangement will help to lessen the administrative burden for Credit Unions offering ‘It Makes Sense’ loans.
Minister Doherty added,
Currently 109 Credit Unions (and their 162 sub offices) are participating in the initiative. Almost 7,000 ‘It Makes Sense’ loan repayments are being facilitated weekly via An Post’s Household Budget facility.
Commenting on today’s announcement, President of the Irish League of Credit Unions, Gerry Thompson said,
The Personal Micro Credit initiative provides for small scale loans ranging from €100 to €2,000 known as ‘It Makes Sense’ loan, by Credit Unions to borrowers who have difficulty accessing low cost credit.
The aim of the scheme is to move people away from the use of high cost moneylenders as a mechanism to provide for their planned financial needs and to provide an alternative legitimate and low cost personal loan scheme.
The ‘It Makes Sense’ loan is offered by Credit Unions at 271 locations nationwide. Loan repayments can be made by social welfare recipients through the Household Budget facility operated by An Post, by direct debit or by standing order.
Currently almost 7,000 loan repayments are being facilitated through the Household Budget This figure does not include loans that are fully repaid, top-up loans or loans being repaid by direct debit or standing order.
The scheme is designed to offer an opportunity for an individual to build up a good credit history and move on to standard loans, and ultimately, to access other financial services and products available from their Credit Union.
Information on the scheme and regular updates, including the list of participating credit unions are available at here