Greenwood reduces military-loan rate

WARWICK – The Greenwood Credit Union has voluntarily reduced its interest rate from 6 percent to 2 percent for members of the military who qualify under the Servicemembers Civil Relief Act.
Executives at the credit union also challenged other Rhode Island banks and credit unions to do the same.
“It’s a friendly and well-intentioned challenge, and we know it will make a difference to our service members and their families,” said Jerry Leveille, Greenwood’s chief lending officer and senior vice president.
Greenwood said that for more than 70 years interest rates were capped at 6 percent for loans issued to armed services personnel under the act, formerly named Soldiers and Sailors Civil Relief Act.
Greenwood executives said they felt that this was high in today’s rate environment.
“We believe that the men and women serving our country are not only, in many cases, putting their lives in jeopardy, their families are feeling severe consequences of any downturns in the economy,” said William A. Walaska, Greenwood’s chairman and a state senator from Warwick. “Perhaps we can bring a little relief and peace of mind for them and their loved ones.”
“Our goal is to support our troops in the best way that we can. This is an area where we have the ability to make a difference.”
Walaska, a Democrat, is the prime sponsor of legislation submitted in March urging all Rhode Island financial institutions to reduce the interest-rate cap to 2 percent for military service members.