By Dennise Williams, Staff ReporterFINANCIAL INSTITUTIONS are in a fierce battle to lend you money.
Innovation is the name of the game, as banks, credit unions and investment houses have to come to the borrowing public with an attractive package. In response to this new shift, Churches Co-operative Credit Union has a new product on the market to challenge existing players.
Launched in August 2003, the Super Easi Loan is a secured line of credit, similar to a credit card. Offering credit lines from $61,000 to $1 million, this facility allows you make one application and upon approval, draw down upon funds as needed over a five-year period.
And similar to a credit card, the amount available is dependent on what you repay.
"Through surveys, we realised that professionals need access to funds to pay for education, investments, home improvement, and to consolidate loans," said Janyce Robinson, credit manager at Churches. Funds can be accessed over the counter or by ABM card.
There is no need to tell what the money is required for, and all that is required is a minimum monthly payment, she said.
"We are cheaper in terms of interest rates at 24 per cent," she said. "We also only charge 1 per cent for processing fees as opposed to up to 3 per cent from other institutions.
"All our loans are insured so that upon the death of the borrower, their debts are paid off. And credit unions do not pay stamp duties to secure real estate as collateral, so that is a big saving.
"We take cash, real estate, life insurance, government securities and stocks as collateral," she said. "We do not accept motor vehicles or furniture as they depreciate too quickly."
The target market for this facility consists of home owners, private and public sector professionals, doctors, dentists and attorneys. Additionally, "self-employed small business people can use this facility for capital investment and working capital," Ms. Robinson notes.
Also, in contrast to typical loans that must be used right away for specific purposes, a facility such as this can be held until needed.
