If you’re facing financial difficulty, you may be looking for new ways to meet obligations like housing, medical bills, and loan repayments. If you’re a member holding one or more certificates with us, we may have a solution to help infuse much-needed cash into your household without withdrawing any funds or incurring early withdrawal penalties. It’s called a certificate-secured loan.
A certificate-secured loan offers benefits like a low interest rate, a predictable repayment plan, and most importantly, doesn’t affect the earning potential of the certificate. Here’s what else you need to know:
Let’s look at two examples. Remember that loan amounts can be as low as only $500, and up to 90% of the combined certificates’ value. The certificate-secured loan term is based on the shortest time remaining to maturity. Note: The following charts are provided solely to illustrate how a certificate-secured loan works. The rates are not guaranteed. For current rates, click here.
This example is pretty straightforward. With only one certificate, the maximum term loan is based on the remaining time to maturity – 24 months with an interest rate of 3.09%.
With three certificates, Member 2 can pledge the combined total of two certificates. If Member 2 chooses to pledge Certificates 1 and 3, the maximum loan amount is $16,200 with a loan term of 18 months and an interest rate of 3.09%.
To apply for a certificate-secured loan, you can call us at 800.237.7328, extension 3846. Once approved, we will mail you an Estimated Loan Note. After the Estimated Loan Note is signed and returned, we’ll fund your account generally within 24 to 48 hours. You will receive your loan proceeds by check or by deposit into your Regular share.
We have other loans you might want to explore, too. We’ll be glad to talk to you about your options. For ideas on how to reduce expenses, visit our blog.