It Makes Sense loan scheme
What is the It Makes Sense loan?
The It Makes Sense Loan offers small, low-interest loans through participating credit unions to people receiving social welfare payments in Ireland. Its goal is to reduce dependence on high-cost credit providers, who often charge very high interest rates. Loans range from €100 to €2,000, with flexible repayment options and a maximum interest rate of 12%.
You can use the loan for any purpose, including paying off existing debts. Repayments are made through the Household Budget Scheme or by standing order or direct debit. The scheme aims to help borrowers avoid high-cost credit providers and manage their finances more affordably.
Who can apply for an It Makes Sense loan?
It Makes Sense loans are available to anyone receiving a social welfare payment who may not be able to get loans or credit from other sources.
- Loan amounts: €100 to €2,000
- Repayment time: Minimum one month, maximum two years
- Maximum interest rate: 12% (12.68% APR)
- Loans can be used for any purpose, including repaying outstanding debts
What do you need to apply?
To apply, you must:
- Be over 18
- Be receiving a social welfare payment
You must agree to repay the loan through the Household Budget Scheme or by standing order/direct debit if your payment is paid into a bank or credit union account. The Household Budget Scheme lets you spread the cost of household bills by paying regular amounts directly from your weekly social welfare payments.
The maximum deduction allowed is 25% of your weekly payment, including other deductions like rent or bills. If you are already using 25% of your payment for other expenses, you cannot get an It Makes Sense loan. In this case, contact the Money Advice and Budgeting Service (MABS) to discuss other options.
How do you apply for an It Makes Sense loan?
Some existing Credit Union rules also apply to It Makes Sense Loans:
- You need to live or work in the Credit Union 'common bond' area to become a member
- You need to be able to show that you can meet the loan repayment
- The final decision on membership and granting a loan rests with the Credit Union
Apply through your local credit union. A list of participating credit unions is available on the It Makes Sense website. If you are not a member, contact your local credit union to ask how to join. You may need to provide evidence of your name, address, and PPS number.
Once you join, you can be considered immediately for a loan. Loans are usually granted within 24 hours of becoming a member and applying.
When you apply, bring:
- Two consecutive social welfare slips (from the previous four weeks) if you collect your payment at the post office
- Two months’ bank or credit union statements if you receive your payment into an account
