Georgia’ s credit unions reported a significant jump in loan growth in the first half of the year as consumers cut their credit card balances but took out more loans to buy new and used cars.
The volume of new vehicle loans grew 14.4 percent and used vehicle loans increased 6.5 percent in the first six months of 2014, according to Duluth-based Georgia Credit Union Affiliates, which represents the state’s 138 credit unions. Overall loan volume was up 4.5 percent in the first half of the year, despite a 3.5 percent dip in credit card balances and a 4.3 percent decline in business loans, according to GCUA.
Meanwhile, the membership in the state’s credit unions grew 2 percent in the same period, to more than 2 million.
The GCUA said the growth reflected Georgia’s growing economy and the credit union’s success at attracting new members and loan business with interest rates that are typically lower than banks charge.
Credit unions are not-for-profit cooperatives that offer their members many of the same financial services as banks, including loans and checking and savings accounts. Traditionally they were open to workers at specific employers or organizations. But many of the institutions now offer membership to anyone in their communities, and some rival substantial banks in size.
The largest credit union in Georgia, Atlanta-based Delta Community Credit Union, has about 300,000 members and $4.6 billion in assets, according to CUDATA. com, an industry data and analysis firm in Provo, Utah.
About the Author
