RALEIGH, N.C. – State Employees’ CU is cutting interest rates on its Salary Advance Loan by as much as 50%.
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For many of the payday loan program’s regular users, SECU will be lowering the standard 12% interest rate to a share secured rate of 5.5% for members who have saved at least $500 under the savings component of the program. The change is projected to save the 100,000 monthly users more than $400,000 in interest costs.
SECU is changing the savings component to require that members increase the amount they put aside to 7% from 5%. A typical $500 loan advance now will result in a savings deposit of $35 as opposed to $25.
SECU said it is exploring the possibility of a $100 minimum-balance CD program as a future improvement to the program.
