A Lending Organisation with a Social Conscience
The NSW Branch Annual dinner in November last year was sponsored by Transport Mutual Credit Union (TMCU). Their Finance Manager Kathy Loutas gave a lovely presentation on its history which started as the Department of Main Roads Credit Union.
Apparently, a number of people who have served on the board of Directors of TMCU also served on Branch and National committees of AITPM.
The Credit Union has now broadened its reach and targets people in all transport related industries.
As a way of encouraging more sustainable transport the TMCU offers a ‘FreeWheel’ bike loan. This is a loan between $1,000 and $10,000 to buy a new bike. TMCU gave us the following information about the scheme:
- TMCU wanted to implement a strategic concept – a response to changing transport modes for commuters, and at the same time a ‘product with purpose’
- The product is an interest-free and fee-free personal loan to fund bicycles, repayable over two years – what you borrow, you repay and nothing more
- TMCU has calculated it costs them $270 to provide each loan
- The scheme has funded over 500 bicycles with a value in excess of $2 million since the product was rolled out
- It was acknowledged by Sydney City Council in 2017 for supporting the move towards sustainable commuting
- TMCU was acknowledged with a Canstar award for Innovation, in competition against all banks, insurers and superannuation companies in 2015
There are some restrictions as to who can get the loan and it is for bikes sold at a retail bike shop in Australia with no online purchases. Link
The Credit Union is taking its commitment to sustainable transport even further with its GoGreen initiatives shortly to release a number of products aimed at supporting the growth in electric vehicles and related sustainable energy.
The GoGreen initiative includes both lending and investment options. You can, for example, apply for a secured personal loan for any combination of electrical hybrid vehicle, solar panels or battery storage. The interest rate is heavily discounted. You could also invest in a GoGreen term deposit which will be used solely to fund GoGreen loans, and deliver you competitive interest at the same time.
We have had some initial chats with TMCU to create opportunities to encourage community benefits in sustainable transport and look forward to exciting collaboration in the months to come.