Spring Loan Sale boosts HEYCU lending
03 Jun 16
A Spring Loan Sale at Hull & East Yorkshire Credit Union (HEYCU) has increased lending by £400,000.
HEYCU’s latest offer features a best rate of 3.5% APR on loans from £5,000 to £15,000, and same day response where completed applications are received by lunch time on a working day.
Since the sale began on 31 March, the year-on-year value of loans issued increased by 91% in April and 61% in May, and interest in the offer is continuing to build as satisfied members spread the word to their family, friends and colleagues. Overall during the first five months of 2016, the value of loans issued has grown by 36% compared with the same period a year ago.
HEYCU Chief Executive John Smith said: “Over the years, we have been hugely successful in attracting members to save with us, but we discovered that while a high proportion had never taken out a credit union loan, many did regularly borrow from their banks. One aim of our campaign is therefore to encourage more of our members to think of us first when considering a larger loan, rather than automatically going to their bank.
“We also wanted to raise awareness in the communities where we operate that we are a serious player in the larger loans market, able to provide a competitive deal. We have always offered loans in that range to our many payroll savers, but in the wider community we have perhaps become better known as an affordable alternative to doorstep lenders and money shops."
HEYCU was established in 1999 and operates from its Hull headquarters plus seven branches in East Yorkshire and Northern Lincolnshire. It serves 12,500 adult members and 1,300 junior savers with a combined total of £8 million in savings, and last year reached the landmark of £10 million in assets.
HEYCU has promoted the Loan Sale via electronic mailshots to existing members, newsletters to CU champions and payroll savers, banners, posters and flyers in branches, and on its website and social media postings. The offer is available until 30 June.
John Smith continued: “Although the reduced margin presents us with a challenge, we feel we have the tools and processes in place to cope with the growth in demand and manage that growth successfully. We are of course continuing to promote our smaller loans, focusing on the big savings that members can make by switching to us from high-cost credit sources.
“We’ve had a fantastic reaction from members who have taken up the offer, with lots of praise for our speed and efficiency too. Our members say they like to support our business because we help to keep money in our regional economy so this gives them another great reason to do so.”