Carytown Bicycle Co. is helping get the word out about a new option for funding a bike purchase. Photo by Michael Thompson.
With its newest loan program, Richmond’s biggest credit union is betting on vehicles of the unmotorized variety.
Virginia Credit Union, $2.7 billion institution, last month rolled out a set of bicycle loans in a bid to create an add-on for its current members and to potentially attract new customers that might normally pay for a bike with a credit card.
“It’s pretty unusual,” VACU spokesman Glenn Birch said. “There are some other credit unions in other parts of the country doing it, but we think we’re the first in Virginia.”
A simple Internet search for bike loans doesn’t return any local results from financial institutions.
Virginia Credit Union has a branch on Glenside Drive near West Broad Street. Photo by Michael Schwartz.
Birch said VACU sees trends moving in the new program’s favor, and he said the continuing construction of the Virginia Capital Trail and the upcoming UCI cycling championships are helping keep the topic of biking on people’s minds.
“It’s clear that biking is becoming more and more popular in the area,” Birch said. “And we recognize that bikes these days cost a lot of money.”
The new program will loan money for bike purchases as low as $100 and up to above $10,000. The loans are being offered with terms of 12 to 60 months, depending on the amount borrowed, and the interest rate will depend on the usual factors such as a borrower’s creditworthiness. Interest starts at 8.49 percent, a rate that should help the credit union compete with credit cards for such a purchase.
The credit union launched the bike program quietly in May and has made a handful of the loans so far.
Car loans are typically one of the bread-and-butter products for many credit unions. New and used car loans accounted for 31 percent of VACU’s total loans outstanding, as of the end of the first quarter. It has $1.72 billion in total loans.
Unsecured personal loans, the category under which the new bike loans will fall, make up about 10 percent of VACU’s total loans.
“We make personal loans to folks for a number of different kinds of needs. But being able to call out a particular product that people are interested in is important,” Birch said. “It’s a way of showcasing the personal loan products that we offer to a new audience.”
Borrowers have to be members of VACU. It offers memberships to a variety of groups, including state employees, local government employees, students and employees of VCU, and those who live, work, worship and volunteer in the city of Richmond, along with other employer groups. The credit union currently has 237,000 members.
Birch said the credit union has been working with Carytown Bicycle Co. to help get the word out on the new loans and may reach out to other local bike shops.
Carytown Bicycle Co. is helping get the word out about a new option for funding a bike purchase. Photo by Michael Thompson.
With its newest loan program, Richmond’s biggest credit union is betting on vehicles of the unmotorized variety.
Virginia Credit Union, $2.7 billion institution, last month rolled out a set of bicycle loans in a bid to create an add-on for its current members and to potentially attract new customers that might normally pay for a bike with a credit card.
“It’s pretty unusual,” VACU spokesman Glenn Birch said. “There are some other credit unions in other parts of the country doing it, but we think we’re the first in Virginia.”
A simple Internet search for bike loans doesn’t return any local results from financial institutions.
Virginia Credit Union has a branch on Glenside Drive near West Broad Street. Photo by Michael Schwartz.
Birch said VACU sees trends moving in the new program’s favor, and he said the continuing construction of the Virginia Capital Trail and the upcoming UCI cycling championships are helping keep the topic of biking on people’s minds.
“It’s clear that biking is becoming more and more popular in the area,” Birch said. “And we recognize that bikes these days cost a lot of money.”
The new program will loan money for bike purchases as low as $100 and up to above $10,000. The loans are being offered with terms of 12 to 60 months, depending on the amount borrowed, and the interest rate will depend on the usual factors such as a borrower’s creditworthiness. Interest starts at 8.49 percent, a rate that should help the credit union compete with credit cards for such a purchase.
The credit union launched the bike program quietly in May and has made a handful of the loans so far.
Car loans are typically one of the bread-and-butter products for many credit unions. New and used car loans accounted for 31 percent of VACU’s total loans outstanding, as of the end of the first quarter. It has $1.72 billion in total loans.
Unsecured personal loans, the category under which the new bike loans will fall, make up about 10 percent of VACU’s total loans.
“We make personal loans to folks for a number of different kinds of needs. But being able to call out a particular product that people are interested in is important,” Birch said. “It’s a way of showcasing the personal loan products that we offer to a new audience.”
Borrowers have to be members of VACU. It offers memberships to a variety of groups, including state employees, local government employees, students and employees of VCU, and those who live, work, worship and volunteer in the city of Richmond, along with other employer groups. The credit union currently has 237,000 members.
Birch said the credit union has been working with Carytown Bicycle Co. to help get the word out on the new loans and may reach out to other local bike shops.