For the second year in a row, BluCurrent Credit Union is offering a zero interest holiday loan and demand has been significant, bringing in heavy traffic to all branches, the co-op said.
Within the first seven days of making the loans available, 66 loans were approved and a total of more than $125,000 was disbursed, the Springfield, Mo., credit union said.
“Last year’s holiday loan went over very well, so offering it again was an obvious choice,” said Randall Bettis, senior vice president of lending for the $145 million BluCurrent. “With this loan, our priority is providing our members with an option that will help ease budgeting stress that is often brought on by the holidays.”
In 2012, 260 holiday loans were approved, totaling over $532,232 as a result of the promotion, including cross sells, the credit union said.
This year, many members are taking advantage of the holiday loan to lower their interest and payments on other types of loans, including credit cards and payday loans, the credit union said.
BluCurrent is among the growing number of credit unions offering holiday campaigns to help members stay out of the red on Black Friday - and beyond.
BluCurrent said it plans to continue this promotion through Christmas.
The terms of the holiday loans are:
• Up to $1,000 at 0.00% APR with approved credit.
• 12 month repayment period.
• Weekly or monthly repayment options for as little as $19.24 a week.
“The Holiday Loan is especially beneficial because, in addition to helping alleviate some holiday stress, if payments are made on time, this can also help build credit history and even improve credit scores,” added Bettis.