Real Deal: Where To Get A Loan

Remember the reason the government decided to bail out the banks?

So they could detox their 'toxic-assets' and start lending money again. But apparently not enough of them are loosening the purse strings. Fox 29 consumer reporter Michelle Buckman found the Real Deal on where you can get a loan.

She found some of the banks bailed out with government TARP money have increased their lending, but not many. So if you're looking for a loan, you may want to think small.

"I would argue that anyone who needs a loan, that qualifies for it, is getting that loan today," said Univest's Philip Jackson.

Univest bank has been around for 132 years but has always stayed small with just 32 branches in Montgomery, Bucks, Chester and Lehigh Counties.

Jackson explains, "The difference is, we know our customers, we know what their needs are."

Smaller, community banks are only as strong as their community, so they have an incentive to invest. They tend to be better capitalized than the big guys and more willing to make more loans. "Our loans outstanding are higher today than they were last year," according to Jackson.

Even though they qualified, Univest chose not to accept government TARP money. "We didn't take on the risk that some of the large banks did. It's certainly evidence of the strength of our banks."

If you are thinking of switching, look for a bank that's locally-based or has a small number of branches so that you have a better chance of getting one-on-one service.

Credit unions are another good option; check out my blog for more details on that.