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."