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Personal Micro-Credit Loan (PMC) – It Makes Sense Loan

By Owner Members, Representation

The Personal Micro-Credit Loan (PMC) – It Makes Sense Loan is now available in 109 credit unions plus an additional 156 sub offices (265 locations in total).    All 109 credit unions are using the An Post Household Budget System for payroll deductions.    A further 12 credit unions have now indicated to the PMC Working Group that they intend to start providing PMC lending in the near future.

Many credit unions who to date have not participated in the PMC scheme, indicated that the current maximum credit union lending rate of 1% per month has deterred them from partaking in the scheme. The 1% rate does not reflect the risk associated with this type of lending.   The Credit Union Advisory Committee (CUAC) which advises the Department of Finance on credit union matters recommended in their latest report that the current maximum rate should be reviewed.   A recent news article in the Irish Independent would suggest that the Department of Finance may soon progress the CUAC recommendation to permit an increase in the rate.  Please note as follows:

Credit union rates will be allowed to double for small loans
Irish Independent (Tue, 11 Jun 2019)

An Post Household Budget have provided the latest update from the weekly figures of the 7th June 2019, which show the number of Personal Micro-Credit Loan (PMC) active and being repaid from An Post Household Budget.

  31/05/19 07/06/19
No. of CU PMC loan deductions currently taking place in the HB system 6489 6487
No. of loan deductions awaiting approval from CUs 40 45

If your Credit Union has not engaged to date with PMC and you would like more information on the PMC initiative, please let us know to