2015 2Q: MI CU's see fastest loan growth in 20 Years
Lansing, MI (Oct. 14, 2015) – $1,019 – that’s how much Michigan consumers will save on the life of a five-year $30,000 new car loan if they receive the loan from a credit union instead of a bank, according to Informa Research Services Rates data from Oct., 2015.
The lower rates and fees that come with being a Michigan credit union member may be powering the steady increase of new members. In fact, the 3 percent 2015 second-quarter membership surge was the fastest 12-month increase in 27 years, bringing the total number of Michigan credit union members to more than 4.8 million, according to the Credit Union National Association (CUNA).
Michigan credit union loans increased by 11.6 percent in the year ending June 2015 – that’s their fastest annual increase in more than twenty years. What’s more, Michigan credit unions offer lower than average rates on new car, used car, personal unsecured, first mortgage fixed-rate, home equity and credit card loans, according to CUNA.
“Credit unions are not-for-profit, member-owned cooperatives that return profits to their members in the form of higher savings rates and lower interest rates on loans, as opposed to for-profit institutions that return dividends to their shareholders,” MCUL & Affiliates CEO Dave Adams said. “This key difference allows credit unions to put their members’ financial needs before all else. Often, the result is savings that make a real difference for consumers.”
Watch an analysis from CUNA's senior economist Mike Schenk featuring detailed information including:
- How Michigan’s credit union membership growth compares to state’s annual population increase
- A look at how Michigan’s unemployment rate compares to the national average
- How Michigan home price increases compare to the national average
- How the average age of consumer durable goods may be impacting certain loans
- An analysis on whether the positive results are expected to continue
In total, Michigan credit union members saved almost $287 million in lower loans rates, savings products and lower fees during the past year, according to CUNA. That translates to an annual savings of $61 per member and $117 per family.
The Michigan credit union loans that helped fuel that savings were up across the board according to second quarter 2015 NCUA data and CUNA.
Here’s a look at key loan growth metrics –
- Total assets: 5.1 percent
- Total loans: 11.6 percent
- Used automobiles: 14.9 percent
- New automobiles: 16.5 percent
- Member business loans: 19.3 percent
- Other unsecured loans: 10.8 percent
- First mortgages: 9.9 percent
- Credit cards: 5.0 percent
Here’s a breakdown of the amount Michigan consumers saved from receiving a credit union loan instead of a bank loan according CUNA data from June 2014 to June 2015.
- New car loans: $16.4 million
- Used car loans: $66.2 million
- Personal unsecured loans: $22.9 million
- 15-year fixed rate 1st mortgage: $4.3 million
- 30-year fixed rate 1st mortgage: $1.3 million
- Credit cards: $79.7 million
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