Shares Secured Loan is using your own funds as collateral for a loan. Much like an Auto or RV loan. The main difference is that instead of a title, like the other loans, we are using the members funds for a loan. You use funds from a Certificate or in your savings account for this loan. When you take out a shared secured loan, the amount of the loan is placed on hold in your savings account. As you make payments on the loan the funds are released from the hold.
- Features:
- Shared secured loans help build credit.
- Shared secured loans can be used for a variety of situations.
- You can rebuild and protect your savings.
- When the loan is paid off, all the funds from the loan will still be in your savings account. (Great way to “build” up your savings account instead of depleting your savings.)
- Minimum Loan Amount: $1,000.00
- Terms: Up to 72 months
- Terms may be extended up to 6 months if adding Debt Protection.
- Additional Features:
- First payment may be deferred up to 75 days.
- Debt Protection may be available.
- Prepayment Penalties: None
Benefits
- Saves you money with a low interest rate.
- Saves you money with no pre-payment penalty for early payoff.
- Saves you time with a quick application and approval process.
- Offers you peace of mind with payment protection.
Target
- Members who are getting a large withdraw for a purchase.
- Members who are new to the credit union or looking to establish credit.
- Members with no credit who would like to start building credit.