Secured Loans

Secured loans are loans that use either a member's share deposit or share certificate as collateral.

Secured loans are a good way to establish or rebuild credit – or to keep your interest rate very low. Here’s how it works: A member would use the money in their account as collateral. The Credit Union would freeze those funds as “insurance” for the loan. As the loan is paid, the funds are released in their account. Meanwhile, the member builds credit (even though they borrowed against their own money) – and, since the loan is secured by their own funds, the rate is significantly lower on this type of loan!

Share Secured Loans offer:

• The ability to use Share Account as collateral
• Low interest rate of only 2.5% above current share rate
• Minimum loan amount of $500
• Terms up to 60 months
• Share account still earns interest
• Principle amount released into savings account after each payment

Share Certificate Secured Loans offer:

• The ability to use a share certificate as collateral
• Low interest rate of only 2.5% above current share certificate rate
• Minimum loan amount of $500
• Terms of 60 months or remaining term of the share certificate
• No penalty for withdrawing from a share certificate to pledge to a loan
• Certificate still earns interest
• Principle amount remains frozen in certificate