NY fed says $6.5 bln of TALF loans settled for Sept

NEW YORK, Sept 14 (Reuters) - The New York Federal Reserve said on Monday that $6.5 billion in loans for its flagship consumer and small business loan program have settled for September.

The Term Asset-Backed Securities Loan Facility, or TALF, is a key part of the U.S. central bank's efforts to cut borrowing costs for consumers. In buying securities backed by credit cards, and student and auto loans, investors have helped free the flow of capital to those sectors once gummed up in the credit crisis.

Investor requests compared with $6.9 billion in August and $5.4 billion in July. Loans for credit card securities topped the list, at $4.4 billion, the Fed said. (Editing by James Dalgleish)