Credit Union lowers interest rates and considers offering loan deferrals

The CICSA Co-operative Credit Union has announced measures to alleviate the financial and economic impact of the COVID-19 crisis on its members.

The announcement follows similar moves from Butterfield Bank, Cayman National Bank and RBC Royal Bank.

The board of directors of the Credit Union approved three measures, including lowering the interest rates on loans by one percentage point from 1 April and deferring April 2020 loan payments for all members in good standing. The interest-rate reduction does not apply to express and overdraft loans.

In addition, the Credit Union will consider deferring the loan payments for up to three months of members working in severely impacted industries who are 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, the Credit Union said.

It will continue to offer the option of skipping a payment without fees each November. In other months, the cooperative traditionally offered loan deferrals that were required, for a processing fee.

This practice was still in effect as of the second week of March before the decision to defer all loan payments in April.

Any deferred loan payments will be added to the outstanding loan principal and will result in the extension of the loan period.

Any member who wants to maintain their regular loan payment schedule should email the loans department at [email protected] or call 815-4222 or 815-4231.