RALEIGH, N.C., Nov. 5, 2013 (GLOBE NEWSWIRE) -- For years, North Carolina-based State Employees' Credit Union (SECU) has been steadfast in its efforts to provide a payday lending alternative to members – a low-cost loan with a savings element that empowers members to break the payday lending cycle. Introduced in 2001, SECU's Salary Advance Loan (SALO), with its unique SALO cash account feature, has saved program users over $400 million in interest compared to typical payday loans with interest rates of 300%+, and currently has close to 144,000 participants with cumulative member savings deposits exceeding $30 million! Over the last decade, SECU has made over 5 million salary loan advances with total lending of more than $1 billion.
SECU's SALO features a $500 maximum credit ceiling for a loan term of 30 days, with a consumer-friendly Annual Percentage Rate (APR) of 12%. Borrowers are required to place a small percentage of the loan proceeds in their SALO deposit account, which also earns dividends for the member. When the SALO deposit account reaches $500, the loan rate drops to a share secured loan rate – currently 5.50% APR. As savings accrue, members can use their accumulated savings in lieu of additional loan advances to end the payday borrowing cycle. SECU complements the SALO program with financial counseling and education to assist members with long-term financial stability.
Jerry Harmon, SECU's Chief Lending Officer notes, "The SALO program benefits are significant, providing an affordable loan alternative when emergency funds are needed, while at the same time, helping members save for their financial future. In order to 'Do the Right Thing' for members, we must offer programs and services that give them a chance to succeed, not sacrifice their financial well-being."
About SECU
A not-for-profit financial cooperative owned by its members, SECU has been providing employees of the State of North Carolina and their families with consumer financial services for over 76 years. With more than 1.8 million members, SECU provides services through 252 branch offices, 1,100 ATMs, 24/7 Contact Centers and a website, www.ncsecu.org.