What Is A Share Secured Loan?

A share secured loan is secured by the funds in your share (savings) or share certificate account on deposit at Workmen’s Circle Credit Union. The funds being used as collateral will be “frozen” for withdrawals and made available as the loan principal decreases when payments are made to the loan. Advantages of a share secured loan are:

• The interest rate is lower rate than most other loans.

• The member can establish credit; allowing for future credit opportunities.

• A lower origination fee than other loans - $25.

• There is a limited approval process. Essentially, you are automatically approved for the loan.

• A member may allow a family member or friend to borrow against their shares at WCCU. This allows the borrower the opportunity to pay their loan as agreed instead of giving them the funds. However, be careful, if the borrower does not pay the loan as agreed, WCCU may use the deposited funds to make the loan payments.

• A member may allow his business to use his personal shares as collateral in order to obtain a low rate on their business loan.

• Your deposits at WCCU will continue to earn dividends. Essentially, if the borrower pays the loan as agreed and the member did not need those funds, the account owner would not notice any difference in their account.

WCCU share secured and certificate secured loans provide you with the ability to build a good credit history while using funds in your savings or share certificate account to secure these loans. Establishing and maintaining a good credit history allows you to achieve many of your goals in life.

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