Affinity Credit Union, United Way give update on loan program

Affinity Credit Union and United Way Regina are doing their part to help people stay out of debt.

On Tuesday, the organizations revealed that 1,604 people have taken advantage of Affinity’s “Restart Loan” since it was launched in June of 2018. The loans have totalled more than $2.5 million.

The program was created to help keep residents of the province from relying on payday loans.

“This loan has been so beneficial to people in a time of financial crisis that we’re encouraging other financial institutions to set up similar loans because the need is so great,” Myrna Hewitt, the executive vice-president of member experience at Affinity Credit Union, said in a media release.

United Way Regina tries to connect people who face financial struggles with the program in hopes of making their situation a little easier.

“Many people in Saskatchewan are just a paycheque away from living in poverty,” Robyn Edwards-Bentz, the chief executive officer of United Way Regina, said in the release. “Often, they are dealing with financial obstacles that prevent a good quality of life.

“Like Affinity Credit Union, United Way believes that every person in every community deserves support to help them get on a path toward financial inclusion and empowerment.”

The Restart Loan is designed for people with low credit scores or no credit history. They can borrow between $200 and $2,000 at an annual interest rate lower than that of most credit cards. As well, approval for the loan can be given in as little as 24 hours.

The interest rate is significantly lower than those offered by some payday lenders.

“We all experience a bump in the road from time to time and may need a short-term loan to get us through,” Hewitt said in the release. “Banks and credit unions should offer individuals who are struggling with a financial issue or caught in a payday loan cycle an alternative. That’s why we made a conscious decision to develop the Restart Loan.”