As the holiday season is here, many Americans face increased financial demands. For those navigating these pressures, Red River Credit Union (RRCU) has an annual holiday loan program that offers a timely and supportive solution. Designed to alleviate the financial strain of holiday spending, the program provides small, manageable loans of up to $2,000 with repayment terms extending up to 12 months, according to Mark Turner, RRCU's chief lending officer.
"Our holiday loans offer members timely financial assistance," Turner said. "By providing these loans, we help members manage their expenses more comfortably while reinforcing our commitment to their financial well-being."
The loan program, offered annually from Oct. 1 through Dec. 31, has become a mainstay for many members. This year, RRCU began issuing loans in October and has already seen an uptick in demand, with more than 2,700 loans approved -- an increase of over 200 compared to last year. The program has become even more relevant amid high inflation, which has increased costs for necessities across the board.
"Inflation has made holiday loans even more essential," Turner said. "By offering an affordable lending option during a season when financial pressures are high, we enable members to manage their expenses without resorting to higher-interest options."
The loans come with a competitive interest rate starting at 9.90%, which varies depending on a borrower's credit score. RRCU's goal, Turner explained, is to keep rates competitive to support members with a cost-effective lending option. To ensure responsible lending, the credit union assesses each applicant's financial health by considering factors such as income, debt levels, and credit score. Members also benefit from financial literacy programs, including guidance on budgeting and smart spending.
To address the broader economic challenges facing some credit union members, RRCU has added additional support options. Debt consolidation loans and skip-a-payment programs are available for those who need flexibility to manage high monthly expenses. Turner noted that these options are critical in today's economic environment and reflect RRCU's dedication to providing members with financial tools that support long-term well-being.
The program's stability has made it a reliable resource for members each holiday season. The credit union's sustainable approach to the holiday loan program -- combining affordability with sound underwriting practices -- helps balance member needs with the institution's financial health.
Feedback on the program has been overwhelmingly positive, Turner said. "Members appreciate the convenience, affordability, and immediate approval, which make a difference during the busy holiday season."
Those interested in applying for a holiday loan can do so online at: RRCU.com or visit any local branch, including the new location at 2709 Old Minden Road in Bossier City.