WASHINGTON (4/1/14)--Details on how consumer-friendly, low-cost, short-term loans can help a credit union's members and its bottom line alike will be shared in an April 16 National Credit Union Administration webinar.
The free webinar, "Small Dollar Lending," will begin at 2 p.m. (ET). During the webinar, NCUA officials and credit union representatives will discuss:
The benefits short-term, small-dollar loans can bring to a credit union's portfolio mix;
Regulatory concerns governing this type of product offering; and
The costs associated with developing or initiating short-term loans.
NCUA Office of Small Credit Union Initiatives Economic Development Specialist Tom Penna Jr., NCUA Office of Examination and Insurance Program Officer Lucinda Johnson and two credit union representatives will present the webinar.
Participants can submit questions in advance at WebinarQuestions@ncua.gov
. The subject line of the email should read, "Small Dollar Lending Webinar."
The NCUA's short-term, small-amount loan program permits federal credit unions to charge an interest rate that is a maximum of 10 percentage points above the established usury ceiling at that time. Currently, this amounts to an interest rate ceiling of 28%.
Most credit unions offering payday loan alternatives also limit fees, provide member financial counseling and encourage members to open savings accounts.
To register for the webinar, use the resource link.