Emergency Personal Loans & FAQs
For existing UWCU members who have been financially impacted by the COVID-19 outbreak, we are offering a low-rate personal loan to help with budgeting concerns. Loan funds can be used for purposes such as to supplement income loss, pay bills and cover expenses related to COVID-19.
- Loan amounts up to $2,500 (conditions apply)
- Same interest rate no matter credit score
- No application fee, monthly service fees or prepayment penalties
- No payments and no interest for the first 90 days.
Should you need a longer repayment period, then:
- Fixed rate of 1.90% APR1 for 36 months
It says, “Loan amounts up to $2,500.” Will everyone be approved for the full amount?
Each applicant will be approved for an amount representing both their documented need as well as other credit factors. The loan is meant to provide short-term funding for those who have experienced a sudden drop of income due to COVID-19. Many members may qualify for unemployment benefits but need funds now to meet immediate needs.
What does the statement, “Same interest rate no matter credit score” mean?
That means that we aren’t excluding applications automatically based on the member’s credit rating, and that all approved applications are extended the same interest rate and loan terms.
What can you do to help people that don’t qualify for this loan?
We offer free financial counseling referrals to help people review their circumstances, and we are also providing financial donations to community organizations to help meet the basic needs of people during these unprecedented times.
Is it normal to make a loan to someone who no longer has a job?
No. In normal circumstances the presence of regular income is a requirement to obtain a loan, but these are unprecedented circumstances. Our loan staff have been given the unusual guidance of consistently approving loans based on the member’s credit profile and income they were receiving prior to their COVID-19 related loss of income.
I’ve been behind on my payments since I lost my job several month ago. Will I be approved for the emergency loan?
The emergency loan is to provide funds to members now to meet immediate needs they have as a result of a sudden loss of income related to COVID-19. We are reviewing and approving loan applications according to the member’s circumstances just prior to the COVID-19 job loss. If we would have approved the loan application before notice of the COVID-19 related job loss, then we will decide to approve it now, even though the job income has been lost due to the impact of COVID-19. We will review every application submitted from our members using the same consistent approach. From your explanation, you may not qualify for the loan since your loss of income and financial need are unrelated to the impact of COVID-19.
I hope to be back to work as soon as possible, but what if I can’t repay the loan in full in 90 days?
There are no payments or interest charges during the first 90 days of the loan. In cases where the borrower needs additional time beyond the first 90 days to repay the loan, the loan will be amortized for monthly payments up to 36 months at a low interest rate of 1.9%.
If I can’t pay the loan back in 90 days, on the 91st day do I have to pay the interest charges you waived during the initial period?
No. We will not collect any interest for the first 90-day period. We will begin charging a low 1.9% interest rate after the initial 90-day period up to 36 months. We don’t anticipate all members will take the full 36-month repayment period, and there are no prepayment penalties, no application fees, and no monthly fees.
Some people face ongoing financial challenges for reasons other than COVID-19 events. Why not just give the money to anyone who requests it?
The COVID-19 events have the potential to impact all of our members, and we want to mobilize our lending resources to help. With this special loan product, we are seeking to respond to the hardship members might be facing from the sudden and unexpected loss of income related to COVID-19, and we have already funded over $1 million in emergency personal loans. In most cases, we anticipate members will qualify for unemployment benefits related to the loss of income. It is a fundamental requirement of lending that we have a reasonable belief in the borrower’s future ability to repay the loan. We are unable to make direct payments of financial assistance to our members, but we can help in this way.
Is it prudent for the credit union to make these loans?
This is an unprecedented time, and prior to the COVID-19 events, these members would have fully qualified for the loan. They didn’t need the loan except for the sudden and unexpected loss of their income related to COVID-19. We believe that the great majority of these loans will be repaid on time, and that the loans themselves will enable a fast-financial recovery for the borrower as we move through the COVID-19 events. UW Credit Union is financially strong, and we can extend this service to the very members who helped create our financial strength. .
My neighbor is a restaurant worker and just lost his job due to the COVID-19 outbreak. He is not a member of UW Credit Union; can he still get the Emergency Personal Loan?
That’s a bit complicated, but the short answer is the loan applicant needs to be a member of the credit union before March 1, 2020 to qualify for this emergency loan.
How to Apply
To apply, please call 800-533-6773, option 1 during regular business hours. Or, fill out our personal loan application and select 'COVID-19 Assistance' as the purpose of your loan. In the comments section, please include details about why you are applying and how you will use the loan funds.