We were approached by a kind elderly woman recently interested in a $10,000 installment loan to renovate her home. She has lived in her current home since the 1970’s and it is in desperate need of some attention, including painting the exterior, reshingling the roof, and repairing the cracked driveway. Her extended pension has left her with a significant amount of monthly income for an older woman, much more than she can spend in a month. Due to other circumstances, her savings have had to be used for other purposes other than fixing up her home. Despite this, she is still dead set on getting these repairs done this summer and we aim to help her make it happen through this installment loan.
This applicant is a woman in her mid-sixties who has done nothing but save money and be frugal for her entire life. Taking out a loan for any reason is not something that she has needed to do for more than 40 years now, but the unpredictability of life has gotten the better of her. Her oldest son ran into financial difficulty in Houston after losing his job due to employer downsizing. This was almost 3 months ago now, and ever since then the applicant has been paying all of her son’s bills including his mortgage, car payments, and grocery bills for his entire family. This adds up quickly and has been a significant drain on the applicant’s savings and on the monthly income from her pension.
Despite this, she has still managed to save a small amount of excess funds each month in hopes of building up enough money to fix up her small Houston home. She is a wise woman and knows that lenders will not lend money to borrowers with no excess monthly income with which to pay the bills. She has done the calculations and knows that she has enough money to safely pay for a $10,000 installment loan with an interest rate of 6.5%, but no higher. These concrete numbers gave us a very solid framework to use moving forward and we used this information to take to three separate lending institutions. We tried one credit union and two conventional banks for loans, and the credit union offered us the best rate.
The reason for the rate discrepancy between the three institutions may have been due to the way we tried to pitch the loan terms. To the other two lenders we said that we simply needed a $10,000 loan expecting it to be a simple process given this woman’s financial history. They were willing to grant us loans, but for sub-par terms. To the credit union, we sold the loan more carefully. We told them that it was to be used for fixing up a home which was owned in its entirety by the applicant. This money, then would be used to add value to an existing property through local spending. This kind of local spending on construction creates jobs where there may otherwise have been none. We can only speculate that there is some kind of incentive for lending to borrowers who intend to use the money to bolster the local economy rather than a foreign one.
Speculation aside, we were able to get this woman an installment loan for $10,000 as requested. The credit union offered us an interest rate of 5.9% per year over 3 or 5 years. The borrower chose the 5 year term in order to hang on to as much money as she could in the short term. This loan included the possibility for faster repayment if desired.
Standard Find Texas Loan’s Borrower Information :
Loan Amount : $10,000
Type of Loan : Installment Loan
Loan Processing Speed (Time frame when money is needed) : Before the end of the summer would be nice, so within a few months.
Bank Name and Branch : First Community Credit Union in Houston
Where do you live (City/Town, State) : Houston, Texas
Zip : 77024
What is your field of employment? : Retired
Employment Position : N/A
How often are you paid? : Monthly
What is your credit like (Good, fair, bad)? : Very good
How did you find us? : My son told me about your service
Are you paid in direct deposit or paper check? : Paper check, of course
Gross Amount Per Paycheck : $1,400
Do you agree to have this information published online? : Yes, of course you can
Extra information : The applicant asked us to include the following – I am very sad for my son and the bout of bad luck he has fallen into. I can’t have my own children going bankrupt, especially not when they have a family to support. It’s very nice that I am in a position to be able to help my son when he really needs it, but it is my turn to finally get my home fixed up. I have waited for more than 15 years to do this, and I am not getting any younger! This summer is the time, so I am very glad you were able to help me with my installment loan.
Note to Lender : I very much appreciate the help you’ve given to an old woman like me. You wouldn’t believe the kind of treatment I get from some people, but you were very nice and I will not forget about that.