The National Credit Union Administration will offer a webinar for credit unions later this month on how small dollar, short-term loans to consumers can improve an institution’s portfolio.
The webinar, which will be held at 2 p.m. EST on April 16, will be led by Tom Penna, Jr., an economic development specialist at NCUA’s Office of Small Credit Union Initiatives. Lucinda Johnson, a program officer at NCUA’s Office of Examination and Insurance, and representatives from two credit unions that offer small-dollar loans will also participate in the webinar.
In 2010, the NCUA approved a rule that allows federal credit unions to offer affordable short-term credit options to members. Demand for more affordable alternatives to payday loans has increased in recent years. Last year, the amount of outstanding credit union alternative payday loans rose 27.6 percent.
Thee webinar’s host and other participants will discuss the benefits of adding a small dollar lending program, regulatory concerns and potential challenges and the costs associated with developing or initiating lower cost loans.
Online registration for the webinar is open at the NCUA webinar registration portal.