NEW YORK–Efforts by credit unions to offer special assistance and relief to members during the coronavirus pandemic and resulting economic downturn have received some national attention in Forbes.
The publication reported “many credit unions and some banks have developed their own versions of the coronavirus hardship personal loan,” before adding, “here’s what you should know before getting one.
Forbes cited CUNA data showing approximately 80% of credit unions are now offering some form of new loan for their members, with many offering personal loans that typically have terms of about three months and are made in amounts up to about $2,000 to help borrowers cover short-term expenses, Many have a low or 0% interest rate, the report added.
The Featured CUs
Among the CU offers featured in the Forbes report:
- Christian Financial Credit Union in Michigan, which offers an interest-free relief loan to assist members during the pandemic who were affected by job loss or reduced hours. No minimum account balance is required; the only requirement is an existing membership with Christian Financial Credit Union.
- Forum Credit Union in Indiana, which offers members with “less-than-stellar” credit a $500 loan for a six-month term at 10.24% APR with no payments required for the first 45 days.
- Suncoast Credit Union in Florida, which offers a Lifeline Loan for up to $4,000 at a 4% APR with loan terms up to 60 months and payments deferred for the first 90 days.
CUToday.info has compiled a far more extensive list of the types of special offers credit unions have made here.
Banks Also Cited
The Forbes report also includes three special offers being made by banks, including:
- U.S. Bank in Minneapolis, which has branches in 25 states, has reduced the price of its small-dollar Simple Loans from $12 to $6 on auto pay and $15 to $6 on manual pay per $100 borrowed.
- First Citizens Bank, with branches in 20 states throughout the Southeast, Southwest and West Coast, is offering unsecured personal loans for up to 24 months with a reduced interest rate and no payments required for the first 90 days.
- Trustco Bank is offering a reduced-rate, short-term personal loans are available from $500 to $5,000 at 4.5% APR for up to 12 months.
The report adds that many financial institutions have restricted or eliminated home equity-based cash out loans as an option.