Loan participation case studies
The council white paper also includes several case studies from credit unions actively involved in loan participation programs. Among them are:
The white paper also includes a section on small credit unions’ experiences with participation loans. While this type of lending is more common among larger credit unions, participation loans can provide smaller credit unions with the advantages of risk-pooling, sharing expertise, and bottom-line rewards.
Sometimes partnering with other credit unions through a CUSO is an effective way for a smaller credit union to take advantage of the benefits of loan participations. This can also allow the credit union to serve members it might otherwise have to turn away.
Next: Pros and cons