Credit Union Reduces Interest Rates & Defers Loan Payments
The board of directors of the CICSA Co-operative Credit Union have approved three measures to assist Members during this time when incomes may have been negatively impacted by reductions in current economic activity caused by the knock-on effect of the COVID-19 crisis.
Firstly, it will lower interest rates by 1% for loans effective 1 April 2020.
Secondly, it will defer all April 2020 loan payments across the board.
The decision to defer loan payments for subsequent months will be evaluated monthly. The reduced interest rate and loan waivers will apply to Members in good standing.
Lastly, there will be additional considerations to defer loan payments for up to 3 months for Members working in severely impacted industries experiencing financial hardship.
Reduced Interest Rates One way the Credit Union will assist Members during this time is to reduce interest rates. Starting 1 April 2020, interest rates will be reduced by 1% automatically to all loans for Members in good standing. The rate reduction does not apply to our Express and Overdraft loans.
Loan Payment Deferral
In addition, the Credit Union board of directors has approved a loan payment deferral across-the-board for Members in good standing starting in April and there will be no fees charged for this deferral.
This includes a 1-month payment deferral for all loans with the intent to extend the deferral up to 3 months for Members working in severely impacted industries experiencing financial hardship. This includes the tourism, hospitality and service industries which are heavily reliant on face-to-face contact.
Loan deferrals after April will be granted on a case-by-case basis.
There will be no fees charged for these deferrals.
Any loan payments deferred will be added to the outstanding loan principal and will result in the extension of the loan period.
Any Member who wishes to maintain their regular loan payment schedule should contact the Loans Department at: loans@ cicsacu.com.ky 815-4222 or 815-4231