OKLAHOMA CITY-A loan to finance storm shelters for members here that was introduced after tornadoes devastated the area in the Spring of 2011 has netted Communication FCU more than three-quarters of a million dollars in loan growth.
Working with local storm-shelter providers, Communication offered unsecured loans for the shelters at 2.99% on two- to five-year terms ("
"We have people that got approved in May and June-tornado season-but they're just now getting the shelters installed," said Lark. "We basically did a pre-approval for them, held the funds, and now that they're getting installed, we're funding the loans."
The credit union continues to offer the loans, and most of the business right now is coming via referrals from the companies that install the shelters. Lark added that Communication Federal planned to make another push in early 2012 before tornado season starts. It does not plan to change the rate or structure of the loan, he said, adding that defaults have not been a problem.
"The biggest lesson we learned from this was to be ready to make decisions and get things out there when the public needs them," said Lark. "The response was great-another credit union [Allegiance CU] copied us on the program, but being first in the market really helped, because we made the move and put it in place very quickly."
