WATERLOO, Iowa - After a winter of extreme weather in the Midwest, $2.4 billion Veridian Credit Union has set aside $3 million to offer disaster assistance loans to members who suffered property damage or other hardships.
Disaster assistance loans are available up to $5,000 and have terms up to 36 months. The loans have a fixed rate between 6.75% APR and 7.5% APR, based on eligibility.
A "Loyalty Discount" of .25% APR can be obtained with enrollment in direct deposit of net income and automatic payments from a Veridian account. For a $5,000 disaster assistance loan with a term of 36 months at 6.75% APR, the monthly payment will be $155.
Veridian CU said the loans are designed to offer homeowners a low-interest way to help manage expenses resulting from weather-related damages to their home. Examples include, but are not limited to, frozen pipes, flooding or storm damage.
"Weather-related damages to a home can cause significant, unexpected expenses, and even temporary displacement for the owner," Doug Gilbertson, Veridian's SVP of operations, said in a press release. "The disaster assistance loan is designed to offer a lower-interest option to homeowners who might otherwise turn to high-interest credit cards to make necessary repairs."
Individuals may apply for a disaster assistance loan through July 1, or until $3 million is loaned out, whichever occurs first, Veridian said.
