Big Kildare Laois Credit Union can quadruple home loan lending

A Portlaoise-headquartered credit union with thousands of members in Laois and Kildare will be allowed to increase radically increase its lending to households and businesses under new changes.

In a statement to the Leinster Express / Laois Live the People First Credit Union (PFCU) said it was delighted to note that, following extensive engagement with key partners, the Central Bank will formally commence the amendments to the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 at the end of September 2025.

It said these changes will give credit unions greater capacity to lend for home loans and business loans, with new separate limits for each. For PFCU, this will mean our capacity to provide home loans will increase by more than four times, while our business lending potential will also grow significantly.

The Central Bank said in a statement said new lending limits will apply from 30 September 2025. It said they will increase the total lending capacity of the sector for house and business lending from €2.9bn to €9.9 billion.

"This is considerably higher available capacity for credit unions to lend to members - but we view this as forward looking, future proofing the limits and providing certainty to credit unions in their business planning," said the Central Bank.

The lending concentration limits for house lending and business lending will be separated.

Sean Dunne is the CEO of the People First Credit Union, which has offices in Portlaoise, Athy, Stradbally and Abbeyleix.

“This is a hugely positive development for our members and our community,” said Seán Dunne, CEO of People First Credit Union.

“It will allow us to say ‘yes’ to more members who want to buy or improve their homes, as well as support more local businesses to grow and create jobs.

"PFCU has been internally developing key skill sets to enable us take advantage of the CP159 amendments. These amendments can only be positive for the futures of our members and their credit union. This is another step forward in ensuring that credit unions remain a strong, community-based alternative to banks, delivering real value for our members,” said Mr Dunne.

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Deputy Governor, Financial Regulation, Mary-Elizabeth McMunn said the changes followed a significant review ,which included engagement with stakeholders and a public consultation process.

“While considerable capacity remained for further lending within the previous lending limits, the updated framework aims to allow credit unions the ability to sustainably develop into the future – within the appropriate guardrails the limits provide and in the long term interests of their members.

"To address current and future challenges, credit unions must now take the opportunities provided to them in the regulatory framework so that they can continue to play their important role in delivering for their members, communities and the financial sector,” she said.

Other changes will see house lending having a limit of 30 per cent of total assets, and business lending will have a limit of 15 per cent of total assets. These limits will be available to all credit unions, representing a simplified approach to the current framework.

Other changes to the lending regulations include providing limited scope for non-principal residence house lending and removal of certain underwriting and board reporting requirements.