Tipperary Credit Union offers a variety of financial products and services to its members, including top-up loans. The Credit Union noticed that its manual processes for managing and administering these types of loans were time-consuming and prone to errors. To address these challenges, Tipperary Credit Union worked with Wellington IT and other Credit Unions to help build a revolving credit solution.
A revolving credit Loan is a flexible line of credit that offers more choice when it comes to lending. Instead of applying for multiple small or top-up loans, Credit Union members can apply for a revolving loan credit limit and then have the option to draw down as much or as little as they wish over a specified period (typically three years) up to but not exceeding this credit limit.
“We worked closely with the team at Wellington IT for a number of months on this project and we are delighted to be able to offer this exciting new Revolving Credit service to our members, issuing over 100 revolving credit loans with €800,000 already drawdown. We thank their Managing Director Ian Glenn and his team and we look forward to adding exciting new features to this service!”
– Brendan Ryan, IT Manager, Tipperary Credit Union
One of the key benefits of Revolving Credit is that it significantly reduces the time it takes for members to draw down funds and reduces the administrative burden on the credit union. Once the credit limit is approved, there is no further underwriting for loan drawdowns.
The automation of the loan drawdown process eliminates manual tasks, such as data entry and loan processing, freeing up staff to focus on other important tasks. This results in a faster loan turnaround time, improving the Credit Union’s overall efficiency and customer satisfaction.
Revolving Credit has already generated huge efficiencies for our Credit Union by reducing the amount of admin and paperwork our staff need to complete by approximately 70%. This also means less paperwork for our members to complete, providing them with a quick and seamless experience to get credit”
IT Manager
Tipperary Credit Union Limited
Revolving Credit offers members more choice and flexibility when it comes to taking out loans. These easily managed loans are more attractive than credit cards or overdrafts, providing ease of access to finance and without gathering and submitting collateral each time. When comparing to overdrafts the member is not required to be in credit for any period of time over a 12-month period as is one of the requirements of having a credit union current account overdraft.
With Revolving Credit, members can access funds online (via cuOnline+ or cuMobile) as and when they need them. They don’t need to go through the loan application process more than once.
Members can access funds as and when they need them, without having to complete more paperwork. Once the loan has been created, our members can access funds as required online, without having to go into the branch”
IT Manager
Tipperary Credit Union Limited
Revolving credit loans can help drive an increase in new members and loan applications.
Members have less paperwork to complete than if they were applying for several smaller or top-up loans and interest is only charged on the amount drawn down, making it a real differentiator from other financial institutions.
“With interest being charged on the portion of the loan that’s been issued – not the full loan amount, we can offer our members a cost-efficient alternative to funding purchases via credit cards”
– Brendan Ryan, IT Manager, Tipperary Credit Union
