North Carolina residents who need up to a $500 rental assistance loan may get a low cost option through the state’s largest credit union.
Salary Advance Loan
State Employees’ Credit Union (SECU) provides a uniquely crafted product that serves as a rental assistance loan for tenants who have run into a cash crunch. With a cap of $500, the loan could be used to help meet rent if you are a few dollars short this month.
If you are falling behind, the loan could be used to help cure a late payment. While it is not a permanent solution, the salary advance loan could be enough to help you catch up on your rent. This could help you avoid the hassles associated with an eviction.
The loan itself is billed as an affordable solution that costs a fraction of what a competing payday loan style product would cost. Instead of paying an average of 391% APR, your actual interest rate would be a maximum of 18% APR. In 2013, the rate was just 12% APR.
This allows you to borrow emergency rental funds in a hurry without having to worry about getting gouged by a predatory lender. It can be a real lifeline for a tenant who is in danger of falling behind on rent and/or utility payments.
The SECU salary advance loan includes a savings component. What this does is to allow you to accumulate funds in a separate account while you have a salary advance loan outstanding.
Each time that you renew your salary advance loan, a small deposit is placed in your salary advance cash account. Eventually your balance could grow to the amount that you have borrowed ($500), which can allow you to repay the loan using the balance of that account rather than having to come up with $500 on your own.
The SECU salary advance product is one of the cheapest rental loan options available. It can help you borrow money cheaply using your direct deposit as a guarantee of repayment.
You are required to be a SECU member in order to be able to take out the salary advance loan. If you or a family member is a state employee, then you may be eligible for membership.
A $25 deposit into a savings account is normally required for membership. Once you have established membership and have direct payroll deposits coming into your SECU savings or checking account, then you may apply for the salary advance loan.