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Improving the social and economic well-being of Montanans through credit unions.     

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Meeting Your Small Loan Needs

 

 

Montana's credit unions offer safe, affordable small loan products.  With reasonable interest rates and manageable repayment plans, a credit union small loan is designed to help you pay off the loan responsibly and promptly, not to trap you in a cycle of debt.  For your small loan needs, try your credit union first!  

Click here to find a credit union near you.

 

Frequently Asked Questions:

Do all of Montana's credit unions make small loans?

Yes, all of Montana's credit unions make small loans, as they have for over one hundred years.  Most credit unions make loans as small as $300.

Can an applicant with poor credit history receive a small loan from a credit union?

Not everyone can qualify for credit union small loans.  If the borrower is already mired in excessive debt or has a record that indicates difficulty in managing debt or credit, credit unions don't believe they are helping the individual by adding another loan to his/her financial struggles.

Instead, they offer other options (rather than answering "no"…it's "not yet").  It is the mission of not for profit cooperative credit unions to improve the financial well-being of their members.  They do this through working individually with member loan applicants, helping those that do not qualify for their loans with the tools they need to qualify in the future.   

Why do credit unions make small loans?

Credit unions do not make a profit on these small loan products, due to the short-term nature and small amount of the loan and the staff time it takes to process the loan.  So why do they offer them when many other financial institutions do not?  This is because credit unions are not-for-profit cooperatives established to improving the financial well-being of their members.  Credit unions look at the long-term relationship with the member, looking to become the borrower's primary financial institution and meeting more traditional financial needs as their situation improves. 

How does a credit union small loan differ from a payday loan?

Payday loans are structured to be short-term loans, typically 14 days in duration, which often puts people into a debt spiral that is difficult to escape.  They are often unable to pay the loan off by their next payday and have to renew the loan and pay the fees once again.

Credit union loans are structured with longer terms, typically 6-12 months, depending on the borrower's ability to repay.  The borrower makes monthly installments, which make repayment more manageable.

How can I help spread the word about the small loans at credit unions?

There are numerous opportunities to partner with MCUCD in raising awareness of credit union small loans in your community.  MCUCD has produced and made available a range of outreach materials for use by community organizations.  Consider hanging one of our posters in your offices, distributing take-one flyers, including our article in your newsletter, or simply referring an individual in need of a loan to their local credit union.  Follow this link to view all of the outreach materials and learn more about our public awareness campaign.

 
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