Low-Income Designated Credit Unions
Numerous credit unions provide valuable usage of monetary solutions for individuals of most earnings amounts, including those underserved or unserved by old-fashioned finance institutions. Credit unions serving predominately individuals qualifying as вЂњlow-income membersвЂќ are awarded NCUAвЂ™s вЂњlow-income designationвЂќ and they are afforded benefits that are certain for for legal reasons, including:
- accepting non-member deposits from any supply
- providing additional money records
- qualifying for exceptions through the aggregate loan restriction for user loans
- taking part in NCUAвЂ™s Community Development Revolving Loan Program supplying both loans and funds for technical support. To get more information, see NCUAвЂ™s workplace of Credit Union Resources and Expansion (starts window that is new web page.
What exactly is a Low-Income Credit Union (LICU)?
A LICU is a credit union for which a lot of its membership (50.01%) qualifies as low-income users as defined in part 701.34 of NCUA foibles (opens brand new screen) . Low-income people are the ones whom make 80 % or lower than the median household earnings or total median profits for folks when it comes to metropolitan area their current address, or the nationwide metropolitan area, whichever is greater.