BILLINGS, Mont.– Billings Federal Credit Union (BFCU) has launched a new small dollar loan product through QCash Financial. QCash is a short-term loan ranging from $250 to $1,000 that helps members deal with unexpected cash needs in an easy to use, mobile application process, the credit union noted.
Using QCash’s digital small-dollar lending platform, BFCU said it automated the loan process using the member’s credit union relationship history to make the lending decision rather than credit history. Members learn immediately what they qualify for, and the funds are deposited into their account right away. The fees and rates are configurable by each financial institution and are substantially lower than predatory, short-term lenders, Billings FCU said.
“One of our member promises is to simplify their lives,” said BFCU President/CEO Tom Boos. “These small dollar loans align with this promise. A member can apply for a QCash loan from anywhere, 24 hours a day, seven days a week if they have access to the internet. And if approved, their funds are available almost instantaneously. It doesn’t get much easier than that.”
In addition to an easy loan application process, the credit union said the QCash Financial platform provides short-term liquidity to members who historically turned to high-cost lending sources, such as payday lenders or pawn shops with triple-digit APRs.
“As we move from economic relief toward recovery and stability, credit unions recognize the pandemic increased financial hardships for many. Financial inclusion is top of mind for innovative credit unions as they look for ways to help those hardest hit. Credit unions, like BFCU, are providing a needed resource to their communities,” said QCash Financial CEO Ben Morales. “Federal regulators are encouraging credit unions to offer small dollar loans which rescue members from a cycle of debt that’s hard to escape. Once the immediate need has been met, members with improved financial health can move upstream to utilize other traditional credit union resources.”