Friday, June 18, 2010

Small Loan Amounts Available

One notable difference that you see at credit unions is the availability of smaller loan amounts on new loans. Qualified members can receive new loan amounts of $100 or more. Most traditional banks require a minimum amount of anywhere from $1,000 to $2,500 borrowed on a new personal loan. Why is this? The small loan is not profitable to the bank. That doesn't mean much to a consumer who has a $150 repair bill and only needs to borrow $150. The difference here is that the credit union's purpose is not focused on profit. We are here to serve and assist our member-owners with their financial needs, however small or large that the needs may be.

This is a good example of a credit service designed to help the bottom line of the consumer, not the bottom line of the financial institution.

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