THE Credit Union Bill goes to report stage in the Seanad today with the latest amendments reflecting changes in the provisions for the amounts which can be advanced by credit unions.

Individual loans by credit unions will be capped at the greater of £30,000 or 1.5 per cent of the union's total assets. The earlier additional restriction that the total of all loans of £30,000 could not exceed 5 per cent of all the credit union's outstanding lending has been withdrawn.

But because larger loans are likely to be for longer durations, another section of the Bill sets limits on the extent to which large loans can be advanced. The total of all loans made for periods of more than five years may not be more than 20 per cent of all loans outstanding while the total of all loans made for periods of 10 years or more may not be greater than 10 per cent of all a credit union's outstanding loans.

These provisions act as a check on the number of larger loans that a credit union can advance. A survey by the Irish League of Credit Unions showed that, of its 427 affiliated credit unions in the Republic, 60 unions have advanced individual loans of more than £30,000.

The Irish League of Credit Unions argued that, because of the extension of the duration of loans provided for in the Bill and the growth of the credit unions, the cap initially proposed on individual loans was too low.

The combination of the latest loan provisions means all loans of £30,000 and all loans of five years or more duration must together not exceed 20 per cent of the total lending by the credit union. The combination of loans of 10 years duration and loans of £30,000 cannot be more than 10 per cent of a credit union's total lending.

The Bill is expected to go back to the Dail for final approval within the next week.