GREGORY, S.D. — Bankers and merchants hoping to boost holiday business in this small town are offering low-interest loans to people who agree to do their Christmas shopping here.
Under the program, qualified applicants can borrow $100 to $1,000, must spend the money by Dec. 24 and must pay it back by Nov. 1, 1988, at 6% interest. The loan is handed out in Gregory Christmas Dollars, play money that will not be accepted elsewhere.
A total of $60,000 is available, with $20,000 each put up by First Fidelity Bank, Norwest Bank and the Consumers Federal Credit Union, said Joe Duling, vice president and branch manager of First Fidelity.
Lower Interest Rate
The normal interest rate on consumer loans is about 12.5% at his bank, he said. The financial institutions and the retailers will split the difference between the normal rates and the special 6% rate.