SPRINGFIELD, Ill. – Credit unions and banks are being invited to participate in an expanded program organized by the state Treasurer’s office which provides soldiers with low-cost loans after their service.
The "Welcome Home Loans" will offer members of the Illinois National Guard and U.S. Military Reserve up to $10,000, capped at 3% interest within six months of their honorable discharge from duty. Previously, Guard and Reserve members were only eligible for the Citizen Soldier Program while on active duty.
Both programs are part of the Citizen Soldiers Program, which deposits money in credit unions and banks throughout Illinois to "buy down" the interest rate on loans to qualified borrowers. The 1% percent return the state gets from the deposit actually provides a boost to its investment portfolio as the rate gained through other investments have a lower return as the financial markets struggle to recover.
