Borrowing guide Credit union focus Protection and planning

Borrowing Money Responsibly

Understand how secured borrowing works, what protections are available, and how nominations can help with estate planning.

Benefit 1

Discounted Interest Rates

Secured loans can offer lower rates than unsecured options. By borrowing against savings or other assets, the total interest paid over the term is reduced.

Benefit 2

Share & Loan Protection Insurance

Dundalk Credit Union provides share protection insurance up to €5,000 at no additional cost, helping protect nominated savings in the event of death.

If there is an outstanding loan balance when a member passes away, loan protection insurance can clear the loan at no liability to the member's estate.

Members are not charged separately for share or loan protection insurance, which can make this a valuable built-in benefit.

Benefit 3

Increased Borrowing Capacity

Securing a loan against savings can increase approval chances and may allow a larger amount to be borrowed by reducing lender risk.

In many cases, approval is quicker because fewer supporting documents are required.

Overall, secured borrowing can combine lower costs, stronger access to credit, and added peace of mind through protection features.

Nominations in the Credit Union

A nomination lets members designate who should receive their credit union assets upon death.

Nomination Form

Members can name one or more people to receive balances, and this nomination can supersede a will for eligible amounts.

Limitations on Amount

There is typically a statutory nomination limit of €23,000. Amounts above that follow a will or intestacy rules.

Impact on Estate Planning

Nominations can avoid delays and help funds transfer quickly to beneficiaries when needed most.

Next step

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Test your understanding of responsible borrowing, member protections, and nomination basics.

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