If you prefer to get your loan from a local lender, your best option would be the local credit union. Every state has hundreds of credit unions that offer personal loans. You can find out the full list of credit unions operating in your state by going to the NCUA or MyCreditUnion site. You can also go through the Yellow Pages to find credit unions that are rarely advertise.
The following are the four benefits of a credit union.
1. Lower Interest Rates
One benefit of getting a loan from a credit union is that you will enjoy a lower interest rate and lesser fees. Credit unions are non-for-profit organization that is exempted from tax so they don’t have to charge you a lot of interest fees. The purpose of their existence is to serve the communities in a specific area. You will find that the interest rate that they offer is less than half of the interest rate charged by the bank. The lower interest means that you have more money left for you to do other personal project or invest your business. You will be able to find a few credit unions that offer interest rate starting from as low as 6%- 10%.
2. Better Customer Service
At a credit union, you will get a better customer service because they put the customer in their priority. Credit union is a smaller institution than a bank and you will find that their staff is friendlier toward you than a bank. They are more business friendly and the supporting backbones for many small businesses that need more funds for expansion.
3. Open to Negotiation with Borrowers
Many credit unions are open to negotiation in lowering the loan interest rates to prevent borrowers from turning to the bank to get a loan. The credit union allows you to use a cosigner or your asset as a security deposit to obtain a lower interest rate. If you want to negotiate with a credit union, you should talk to the loan officer and tell him you found other banks offering even lower interest rates. It is important, to be frank to the loan officer as he is going to check and find out about it. Once you and the loan officer have reached an agreement, you can apply for the loan.
4. Easy to Join Membership
To get a loan from a credit union, you need to find one with criteria that you can easily meet. Normally, the credit union membership is open to people of a specific organization or workers that work in a specific company. For example, some credit unions can only be joined by employees of an airline. If you are a relative of a member, you can also become a member automatically and be eligible to access the products that the credit union offers.