Save As You Borrow – apply for a FAIRshare loan todayPosted on Mar 30, 2017
At times when you need to borrow from us, we allocate part of your weekly or monthly repayments to your savings account so you have a cash lump sum when you’ve repaid your loan. We call this ‘Save As You Borrow‘ and its one of the great benefits of borrowing from FAIRshare.
We know our members benefit form Save As You Borrow and now there is a new report confirming this.
The Fairbanking Foundation published a great report recently called Save as you borrow – credit unions creating good habits. This report highlights the overwhelming evidence that shows that borrowers that save whilst paying pack a loan become habitual savers. Click here to read the full report.
Members overwhelmingly think it is helpful
The report highlighted four aspects of Save as you Borrow which are helpful – it is easy, the savings provide security, it provides a lump sum at the end of the loan and there is a sense of achievement. An impressive 97% of survey participants found it ‘helpful’ being able to save at the same time as paying off their loan.
Research by the Fairbanking Foundation carried out by Ipsos MORI shows that 67% of save as you borrow users who had no savings, and found it impossible to put money aside, now have plans to save regularly throughout the year as a result of using a Save As You Borrow product.
A ‘high five’ for credit union lending
Save As You Borrow is not the only way in which credit unions are helping their members. The report goes on to explain 5 other ways in which credit unions support their members with the loan process and are offering an exceptional service to help members.
- Budgeting – helping members to work out for themselves what they can afford
- Reviewing loan amount & term options – helping members consider the best option
- Easy payment – providing a choice of payroll deduction, standing order, links to benefits & prepaid card
- Repaying the loan early – enabling members to pay off early when you can afford to do so
- Supporting members in difficulty – a range of approached to help members, including the potential to use the savings accumulated to smooth a temporary difficulty
Its great to have confirmation that the Save As You Borrow model used by credit unions like FAIRshare is very helpful to members. For more information & to apply online for a FAIRshare loan, click here.