Share Secured Loans? What’s That?
Among all of the other excellent loan opportunities that we offer our members, we present to you our Share Secured Loans. With these types of loans, Section 705 FCU enables you to borrow against your shares to continue earning dividends while securing the funds that you need! Read more about these different types of share secured loans below.
There are two options when borrowing against your shares (savings).
- With a Regular Share Secured loan you are able to borrow the full amount of your Regular Share balance. Your full account balance continues to earn dividends at the current rate for Regular Shares, while you pay only 2% above the current rate being paid on savings for the portion you borrow. The current loan balance is frozen until the loan is paid in full; however the pledged portion of the account is reduced with each payment made on the loan.
- We also offer a 0% Share Secured loan. Section 705 FCU will open a special share (savings) account that pays no dividends on the funds pledged for this loan. You in turn will pay no interest on the loan. Once the loan is repaid in full, the funds in the special no interest savings account will be transferred back into the interest bearing account. The original amount of the loan will be frozen and unavailable until the loan is paid in full.
If you’d like more information on these Share Secured Loans, feel free to contact us and speak to one of our experienced and caring loan officers. Call Cassie, Malana, or Hannah to make an appointment for more information today.
Posted in: Personal Loans