GRAND RAPIDS, Mich.–Credit unions that are clients of CU*Answers can now offer a new “step-down” type of line-of-credit loan that combines the benefits of a long-term open credit loan with the flexibility of a revolving line-of-credit, according to the CUSO.
The new loan product allows credit unions to extend a line of credit and then lower the available balance (and loan payment) incrementally each month, CU*Answers said. For example, the CU might extend $10,000 for a construction project and then lower the available balance and loan payment by an incremental portion of the initial loan amount each month.
“The step-down loan is a great new innovative product for your lending teams with opportunities that range from commercial lending needs to consumer applications, as well as your real estate teams,” said Geoff Johnson, Chief Operations Officer at CU*Answers
CU*Answers provides core processing for over 250 credit unions nationally.