Share Secured Loans

Borrow up to your saving balance
at 7.30% APY for 60 months

Disclaimer:  This rate is for information purposes only.
  Please contact your branch office to ensure that the rate is still current.

 The Basics
A share-secured loan allows you to receive a significantly reduced loan rate in return for pledging your credit union shares as collateral against the loan. 

In order to be classified as a "share-secured" loan, 100% of the loan balance must be covered by your savings. For example, If you borrow $5000.00 - you need to pledge $5000.00 from your savings account.  Your pledged amount automatically reduces with your loan balance.  

The rate is a fixed rate and is calculated at the time you apply for the loan.  It is calculated at the "top money market tier rate plus 3%".  Right now, our top money market tier rate is 4.3% - so the share secured loan rate is:   4.30% + 3% = 7.30%.     

Great for members who need to build a good credit history:

If you're new to credit, have a limited credit history, or have had previous credit problems, a share secured loan can help you build up your credit.  The loan is automatically approved and payments are automatically deducted from your paycheck (no late payments to hurt your credit record).  Each month, this loan is reported to the credit bureau as a current account in good standings -- and over time -- helps to build a stronger credit record.
 

Benefit for members with long-term savings accounts:

If you are one of the many members who build a savings account – with no intention of withdrawing those funds for several years -- then this program is a benefit for you.

In the past, you only had two options when additional funds were needed, you could either:

• withdraw your savings and start over, or,

• apply for a loan at the current personal loan rate.

This program is designed to help you make use of your credit union savings and reduce your borrowing costs –thereby—increasing the over-all "benefit" and "return"  on the funds you have deposit with us. Let me explain...

Now, assume that you need $5000.00 and do not want to withdraw your savings.  You decide to apply for a personal loan -- with a repayment term of 36 months.  

Let's further assume that your risk score is "average", which means that you qualify for a rate of 10% APR on your Personal Loan.  Over that 36 months period, you would pay $809.33 in loan interest and receive $254.00 in share dividends (at the current dividend rate of 1.65%APY).   

Now assume that instead of a personal loan, you used your savings as collateral and borrowed the $5000.00 at the share secured rate of 4.65%.  After 36 months, you would have paid only $367.12 in loan interest (versus the $809.33 above).  That's money that you keep in your pocket and therefore represents a cost savings of $465.69. 

Now calculate the over-all return (or benefit) that you received from having those funds on deposit with our credit union: 

          Add the share dividends you earned:          $254.00
       + The loan interest you saved:                    +$442.21
       = Total Yield Benefit from Savings              = $696.21 
          (equivalent yield of 4.35%)

Loan Application

You may apply for your loan in person or use our "secured" online loan application.  It's fast--it's safe--and it's easy.  To use the online loan application, simply "click here" or click on the "Online Loans" tab above.