St. Mary’s Bank has launched a short-term loan designed to be an alternative to high-interest payday loans.
The loan, MyPay, has a fixed annual percentage rate of 18 percent – which is half the 36 percent interest cap the state wants to place on payday lenders.
MyPay borrowers are allowed 12 loans per year within a line of credit of $250 or $500. Their monthly balance must be paid in full before taking out another advance, but there are no late fees or penalties for prepayment.
Founded in Manchester, St. Mary’s Bank is the nation’s oldest credit union. There are branches locally in Hudson, Milford and Nashua.
source:http://www.nashuatelegraph.com/apps/pbcs.dll/article?AID=/20080425/BUSINESS/392139993
