Why Lenders Are Testing A 0% Loan Product For Emergency Expenses

Credit unions have long been one of the most empathetic sectors of the financial industry in creating products that put people first. Now several are testing a 0% loan product that can help people who need short term cash infusions from $500 to $3000 to get a loan immediately and pay it back after 12 months without incurring any interest. To ensure they don’t accidentally impact a borrower’s credit rating, payments (whether on time or late) are not reported to credit bureaus and the entire product is wonderfully crafted with empathy for real people at the heart of it.

This is the type of innovation that would be amazing to see more often in the financial services industry. One that doesn’t prey on vulnerable consumers but rather gives them a chance at financial relief from difficult circumstances without setting them up for long term servitude and debt trying to pay back the money. The college loans sector could use a product like this too.