2018 Pay Day Loan Changes

Sometimes things come up and it is tough to make it until the next payday without a little extra cash.  We are always happy to help our members out with a Pay Day Loan.  We do need to update you on some changes to our Pay Day Loan Program.

As of January 1, 2018 the EEFCU, due to Regulatory changes, has made some adjustments to our Pay Day Alternative Loan. It will now be called the PAL – Short Term Loan.  

Many of the same features of our existing program will stay the same, but in order to meet the new regulatory requirements adjustments were made.

Here are the features of the EEFCU PAL Loan.

    • Maximum loan amount is $500.
    • Member must be employed for a minimum of 90 days.
    • A borrower cannot be given more than three PAL loans in any rolling six-month period and cannot have more than one PAL loan at a time; Meaning, the EEFCU will not make more than three PAL loans in any rolling 6-month period to a borrower.
    • There is a Repayment term of up to 60 days and the loan has to repaid in two or more equal payments in equal intervals.  Example: 1 payment at 30 days and second payment at 60 days; equal weekly payments, equal bi-weekly payments over the 60 days period.
    • Application fee is $20.
    • The loan is fully amortized – no rolling over loans. A Member may not have more than one PAL at a time. Any existing loan must be paid in full before another loan can be granted. Note: If a member repays their loan in 30 days, they cannot have another PAL loan immediately, they have to wait 30 days to meet the rule of no more than three loans in 6 months and therefore, they can have a loan every other month if they are doing 30 day repays.
    • The Interest Rate is 18.0% APR.
    • Current pay stubs or direct deposit verification is required for all loans.

For more information or if you are in need of a Pay Day Loan, give us a call.