Bank on Family
Lending money to family and friends? There’s a big chance you won’t see that money again….
Bank on Family is a lending program designed to make the informal lending process smoother.
What is informal lending? Like the name implies, it’s when friends and family borrow from each other. So instead of coming to the credit union for a loan, your brother asks you for $200 and, being the helpful brother you are, you lend them the money – informal lending at it’s finest.
With Bank on Family, you can still lend and borrow informally, but the credit union provides a couple of simple, but useful, tools to smooth out the process.
First – no more ‘take my word for it.’ With Bank on Family, we put a simple, but effective loan agreement in place. With this, both parties have, in writing, a way to know how much is being borrowed and when it’s expected to be paid back. See, simple – but when it’s time to get your money back, this critical piece of info can prove invaluable.
Second – instead of this just being an arrangement between you and your family – you have your friends at the credit union to help. With Bank on Family, the loan is administered through the credit union and therefore borrowers get credit for this money your lending because it’s filed with the major credit bureaus.
This tool is perfect for:
Informal lending with a touch of formality.
Use our Loan Agreement to ensure both parties are clear on what’s expected.
Helping your borrower stand on their own.
Reduce the need for repeated loan requests by helping family and friends build credit.
In less than 1 minute, a few key pieces of info are all you need to get started.