It was an idea that grew out of a Board Planning Session, recalls St. Agnes Employees FCU CEO Margaret Burdette. “With gas and energy costs rising, members were looking for ways to save on their bills. Hybrid cars were growing in popularity and the government was rolling out incentives to encourage consumers to move toward more energy efficient purchases, from replacement windows, to heat pumps, to appliances.”
The credit union’s Loan Committee developed policy and loan recommendations for the Board to consider and the “Green” Loan Program was launched.
Under the provisions of the program, members apply for loans in three different categories, auto loans, personal loans, and home improvement loans. In each case members are offered a 1/4% reduction off the credit union’s current loan rates for approved purchases. Appliances and home improvements have to be recognized as either Energy Star-qualified, or in the case of home improvements, the project needs to qualify for federal or state tax credits for consumer energy efficiency. Any hybrid car, new or used, qualifies for the program. So do any new or used autos with a combined MPG of 28 or higher. And while “Cash for Clunkers” has expired and federal tax credits are being phased out, members can still save energy, qualify for a reduced loan rate, and do their part to create a “greener” America while building St. Agnes’ loan portfolio.
Use our free online tools to see how a “Green Loan” Program can help your members and your credit union. Download the “Green Loan” Calculator by clicking the image below and see how “Green Loans” can benefit your members and your credit union.