60-day interest free loans for furloughed government employees

At Avadian Credit Union (Hoover, AL), exceptional service means offering products that directly meet accountholder needs.

At Avadian Credit Union (Hoover, AL), exceptional service means offering products that directly meet accountholder needs. 

So during the government shutdown, Avadian scrambled to develop loans that would help strapped federal workers during this time of need.

0 percent for 60 days

What Avadian came up with was a 0 percent loan for 60 days, along with an additional 30-day loan upon request.  

Plus, the credit union didn’t put a loan limit on this offer to accommodate a variety of immediate needs. 

“We know it’s hard to be without a paycheck, even when you think you will get paid eventually,” Linda Cencula, President and CEO said in a release statement.

“That’s why we initiated this shutdown assistance loan program to help employees of federal government agencies.  It’s designed to give them access to money they need to meet their financial obligations at no interest.”

According to Eric Chambers, Marketing, Social Media and Public Relations Specialist, the loan is subject to membership, creditworthiness, approval, and proof of furlough and employment by the federal government. 

Furlough loans are single-payment loans with the full loan amount due at the end of the term.  If necessary, the loans may be refinanced as a Signature Loan, with a rate between 6.99 and 18 percent APR, based on the member’s creditworthiness. 

Chambers says the program is for both furloughed employees, as well as those federal government employees working without pay—who will be paid when the government re-opens. 

Loan apps can be started online

While the member can start the application process online, final approval typically occurs at the branch. 

“As for staff training, our member service reps just need to make sure they have proof that the member is a federal government employee, along with a copy of their paycheck and furlough. It’s pretty straight forward so not a lot of training was necessary.”

Chambers says that he’s been getting the word out mainly through social media and media interviews.  

He adds the offer has no strings attached, which is different than what he’s seen in his market. “I’ve seen some skip-a-pay offers or credit unions that offer government shutdown loans, but you have to have something like direct deposit to qualify.” 

Also, he says some financial institutions have low amount caps or charge interest. “We are doing the loan purely as a service to our members who are dealing with the government shutdown.” 

Source: Eric ChambersMarketing, Social Media and Public Relations Specialist, Avadian Credit Union, Hoover AL; phone (205)444-3772; e-mail echambers@avadiancu.com.

Eric Chambers, Marketing, Social Media and Public Relations Specialist
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