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Permanent takes on credit unions

Permanent TSB, the State-rescued bank, is to take on the credit unions with new lower car loans and cash-back borrowing.

Cash-backed lending is standard in credit unions, where savings are pledged against the loan, or those taking out a loan have to keep saving at the same time as repaying the borrowings.

Credit unions often use the size of savings to determine how much can be borrowed.

Typically, the maximum loan available to any credit union members is three times their shares. Now Permanent TSB, helmed by Group CEO Jermemy Mansing (inset below) has launched a new range of lending products with similar characteristics to credit union loans.

Interest rates charged by Permanent TSB on the cash-backed loans will depend on the amount of borrowings that are backed by deposits.