UC - Helping Hand

Helping Hand

Helping Hand loans are for members who need financial assistance, but do not qualify for a traditional loan.

When all else fails, Helping Hand loans can be a way to help members out of a tight spot. They are an unsecured loan that can be approved outside of normal loan policies, with guidelines of their own. When a loan fits within the following guidelines (regardless of open collections, used unsecured limit, too high of DTI, etc), it can be approved by a lender with full lending authority on their own. Lenders with limited approval authority will need one lender with full approval authority as an approval signature.

Loan is processed under the Helping Hand purpose code to identify all loans for reporting purposes under the new purpose type.

The Credit Union will allocate no more than $25,000 at a time to be outstanding in these special purpose type loans as an aggregate total. (50 loans @ $500)

Members must have an established membership with the Credit Union for a minimum of 6 months.

Loan amounts are limited to $500 but could be as low as $100.

Loan Terms may not exceed 12 Months (No extensions for adding Debt Protection).

All Interest Rates for this purpose type are a fixed rate of 18%.

Members may not have more than one of these purpose types open at the same time with the Credit Union.

Members may not have more than two of these purpose type loans within a 12-month period of time and the waiting period between payoff of old loan and opening a new loan with this purpose type will be 6 months. Exceptions to these time limits must be approved by the CEO, CLO or Credit Manager.

No extensions or holiday skips allowed on these loans.

No prior loss the Connections Credit Union.

Members with an existing ODP loan must have application reviewed by the Resolutions Department and their approval must be noted on the worksheet.

Exceptions to any of the above items must be approved by the CEO, CLO, or Credit Manager.