IT isn’t something that’s widely known, but Clonakilty & Dunmanway Credit Union have given their borrowing members a 10% loan interest rebate over the past few years.

Last year alone, that has totalled some €400,000 given back to their members.

It’s another reminder of the difference between your local credit union and a commercial bank, where each member is a shareholder and who share in the surpluses of their credit union.

'We’re a non-profit organisation and our accounting period runs from the 1st of October to the 30th of September,' says Anthony Forde, CEO, of Clonakilty & Dunmanway Credit Union.

'Depending on our surplus at the end of the financial year, that’s what determines the dividend and the loan interest rebate.'

In the last few years, there has been a surplus. A 10% rebate on loan interest has been paid back to members, having been proposed by the Clonakilty & Dunmanway CU Board and approved by the members at their AGM.

What this means in practice is that, at a point in the year when Christmas is approaching, people have been receiving an unexpected earlier Yuletide cash boost.

'A lot of people are unaware that it happens,' says Credit Controller, Sinéad McCarthy 'We have members, for example, who receive a Loan Interest Rebate that is (or almost) equal to their monthly loan repayment, and sometimes they use it for that purpose. Thereby, the rebate saves them having to make the monthly repayment directly from their own pocket. It’s like an early Christmas present that they didn’t know about!'

When a rebate arrives, it doesn’t necessarily have to be used as a repayment.

It’s given to the CU member to do with it as they see fit. People can simply withdraw it immediately and use the cash, such as another member who got €350 back and used it as extra Christmas spending money.

It’s just one of the many benefits that a Credit Union loan has over a commercial bank loan.

And with Clonakilty & Dunmanway Credit Union making a policy of giving back to their borrowing members when they can, it makes great sense for business and members, in the communities they serve.

For further details, call: 023 883 3842 or 023 884 5787 or visit: www.cdcreditunion.ie