MANCHESTER, N.H. – St. Mary’s Bank, the nation’s oldest credit union, last week announced it is offering its members a payday loan product.
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Introduction of the new product comes as the state legislature is debating curbs on payday loans.
Known as MyPay, the loan has a fixed rate of 18%, significantly lower than the 36% cap the state is proposing to place on payday lenders.
MyPay borrowers are allowed 12 loans per year within a line of credit of $250 or $500. Their monthly balance must be paid in full before taking out another advance, but there are no late fees or penalties for prepayment.
