Low Interest Salary Advance Loans From Credit Unions.

Salary Advance Loans offer an alternative to payday lending. Salary Advance Loan Programs (SALO) are a new loan product created by credit unions in their desire to serve members and households with short term cash needs, and to help break the payday lending cycle.

The programs typically allow members to take out salary advance loans without having to pay annual percentage interest rates between 200% and 900% and the fees that are required at most payday lenders. The SALO program loans will usually have a maximum loan amount of $500-$1000 and a minimum of $50 with an interest rate below 18% (many loans are as low as 12%) and they have no fees that people need to pay.

 

 

 

Salary advance loans offer an alternative to payday lending and the potential negative financial impact of payday loans and lenders on consumers.

Why offer Salary Advance loans?

They are significantly less expensive than traditional payday loans. Borrowers do not have to pay a fee on the cash they borrow, and the interest rates are much lower. 18% APR or lower on their advances.

On a $500 cash loan for 30 days, borrowers will save at least $177 with a Salary Advance Loan from a credit union.

$250 loan	Interest & Fees	Loan Amount	Annual Percentage Rate	Term	Total Finance Charges
Payday Lender	$15 per $100 borrowed for each 14-day term	$250	391.07%	28 days	$75.00
Salary Advance Loan	18% APR (maximum)	$250	18.00% (maximum)	30 days	$3.70
save with a $250 loan					$71.30

$500 loan	Interest & Fees	Loan Amount	Annual Percentage Rate	Term	Total Finance Charges
Payday Lender	$15 fee per $100 borrowed for each 14-day term	$500	391.07%	28 days	$150.00
Salary Advance Loan	18% APR (maximum)	$500	18.00% (maximum)	30 days	$7.40
save with a $500 loan					$142.60