Salary Advance Loans

In North Carolina, payday lenders typically make loans to consumers by charging a fee of 15 percent of the amount of a postdated check, and then hold the check until the customer's next payday. This fee is equal to an annual percentage rate of between 200 to 900 percent, depending on the number of days the check is held. While these companies seem convenient and hassle-free, exorbitant fees due on payday force consumers to borrow again to make up for the extra expense and the borrowing cycle continues.

To help members avoid falling prey to payday lenders, LGFCU has developed a low cost alternative-the Salary Advance Loan. A two-part program, the Salary Advance Loan offers an inexpensive and convenient loan, plus financial counseling to help members end their monthly borrowing cycle. 

 Features

• Loans have a maximum ceiling of $500
  
• No fees
  
• Loan and accrued interest must be repaid by an automatic debit from an LGFCU account on the member's next pay date.
  
• May be called in by phone or apply via MemberConnect.
  
• Available only to members whose paycheck is already on direct deposit with LGFCU.
  
• Application and underwriting requirements are minimized
  

Breaking the Borrowing Cycle
A growing number of members are frequently borrowing just to meet monthly financial obligations. The second part of Salary Advance Loan provides free financial counseling and a Salary Advance Cash Account to help break the payday borrowing cycle.

Financial Wellness
Members receive no cost financial counseling through our alliance with BALANCE. BALANCE counselors work with you to set up a spending, budget and/or debt management plan.

Salary Advance Cash Account
In addition, to help you begin saving for the future, a Salary Advance Cash Account is established for every Salary Advance Loan.

• Five percent of each loan advance is placed in this account and pledged as collateral for the Loan.
  
• The account belongs to the member and earns interest
  
• Access is restricted
  
• Withdrawals are permitted only with authorization by a Credit Union Lending officer.
  
• If a withdrawal is approved, borrowing privileges on the Salary Advance Loan may be suspended for a period of time.
  

By establishing this savings account, the Credit Union hopes to provide our members with a means to save money easily and end the payday-to-payday cycle.

Ready to apply?

• Log on to MemberConnect, click on Services. Go to Apply For, Personal Loan and under Loan Type select New Salary Advance Loan.
  
• Contact the Call Center or
  
• Visit your local branch