A long-standing tradition for some credit unions, holiday loans continue to benefit members as well as help cooperatives meet lending goals and elevate their profiles, executives reported.

Branded as 12-12-12 loans by many because of $1,200 maximums, 12% APRs and 12-month terms, holiday loans have become larger and more complex in order to meet shifting member needs. In addition, they're often offered beyond the fourth quarter of the year.

"We have offered holiday loans for years, and we have members who look for those loans every year," Lynette Smith, president/CEO of the 8,800-member, $95 million Washington Gas Light FCU, said. "Not only do our members want them, the loans help us meet our targets for the signature loan program and help our members lower their costs."

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.