PITTSFIELD, Mass. -
The rate on the "New Road" loans generally will be set at half the rate of other subprime lenders, and will be reduced after each six-month period the member makes regular payments. After three years, the rate will be equal to the credit union's prime auto loan rate. Introduction of the subprime loan comes as hundreds of credit unions have exited the market over the past two years in the wake of the bankruptcy of Centrix Financial.
Greylock said it introduced the program because of few alternatives in its western Massachusetts market for subprime car buyers.
Greylock is the biggest credit union in western Mass., with more than $900 million in assets.
