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CREDIT COMMITTEE REPORT
The function of the credit committee is to consider loan applications, oversee the loans approved by the loans officers and prepare a monthly report for the Board.
1,768 loans (2021:1,506) valuing €7,858,324 (2021: €7,266,515) were issued within our community in this financial year showing loan growth which is a strong indicator of our position within the community as a preferred lender for affordable financial services.
The provision of loans to members is a primary service of our Credit Union. All loan applications are individually assessed and whilst every effort is made to approve each application, the process must ensure that there is no undue risk to the individual borrower or to the Credit Union as a whole. When evaluating loan applications, we are always conscious of the fact that we are lending members’ savings. The member’s ability to repay the loan is therefore the most important consideration when assessing a loan. Members’ history of borrowing is checked on the Central Credit Register as part of the lending process. Loan applications must be accompanied by proof of income and up to date three months bank statements to comply with Section 35 of the Credit Union Act 1997 (as amended).
As noted in the financial statements, consumer confidence is reducing with the ongoing effects of the war in Ukraine, high inflation and heightened uncertainty as disposable incomes of households are impacted. This may result in a reduced appetite for borrowing in the coming year. We would ask members that if the need to borrow arises to come talk to us.
Benefits of borrowing from your local credit union include our community commitment, positive economic plus social change that make credit unions different from traditional for- profit banks and other financial institutions.
With access to a safe, convenient place to save and secure affordable loans, members can realize their dreams and create new opportunities for themselves, from educating their children, improving their homes to starting small micro businesses. Another benefit of borrowing from the credit union is the Loan Protection Insurance at no extra cost.
We would like to thank the Board of Directors, Management and Staff for their help and co-operation during the past year and thank all our borrowing members.
Committee Members:
Colette Phelan, Michelle Kemmy, Seamus McDonnell
For the year ended 30 September 2022
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