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|
Question |
Fully Secured Loan |
Signature Loan |
Empowerment Loan |
|
1 |
Is this a secured loan? Is there collateral that can be accessed in the event of delinquency? |
Yes |
No |
No |
|
2 |
What is the amount of the collateral? |
100% of the amount borrowed. |
N/A |
N/A |
|
3 |
What is the minimum amount that can be borrowed? |
$300 |
$300 |
$300 |
|
4 |
What is the maximum amount that can be borrowed? |
N/A |
$30,000 |
$6,000 |
|
5 |
What is the base APR (annual percentage rate or interest rate)? See Note below. |
5.5% |
8%-11% |
15%-18% |
|
6 |
What is the required FICO score? |
N/A |
600+ |
below 600 |
|
7 |
Is there a pledge* required? |
No |
Yes |
Yes |
|
8 |
What is the amount of the required pledge? |
N/A |
10%-20% |
33% |
|
9 |
May the pledge be taken from the loan proceeds? |
No |
No |
Yes |
|
10 |
Can the pledge be used to make loan payments? |
No |
No |
No |
|
11 |
Does the pledge earn dividends? |
Yes |
Yes |
Yes |
|
12 |
Is there any penalty for pre-paying the loan? |
No |
No |
No |
|
13 |
What is the application fee? |
$25 |
$25 |
$10 |
|
14 |
Are there any restrictions on how the loan proceeds be used? |
No |
No |
No |
|
15 |
What is the maximum loan term (in months)? |
48 |
48 |
36 |
|
16 |
Is Financial Literacy Training required? |
No |
No |
Yes |
|
17 |
What is the frequency of loan payments? |
Monthly |
Monthly |
Monthly |
|
18 |
What is the grace period? |
15 days |
15 days |
15 days |
|
19 |
What is the amount of the late charge? |
$10 |
$10 |
$10 |
|
20 |
How can payment be made? |
The borrower can send a check to the credit union or bring it (or cash) to the credit union. The borrower can send an ACH transfer to the credit union or transfer funds from his/her shares to cover the payment. |
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|
21 |
Can this loan be subject to promotions and loan sales? |
Yes |
Yes |
No |
|
22 |
Is loan activity reported to the credit bureaus? |
Yes |
Yes |
Yes |
|
23 |
Once the application and required documentation is submitted, how long does it take for the Credit Union to make a decision? |
48 hrs |
48 hrs |
48 hrs |
|
24 |
May loan applications be submitted online? |
No |
No |
No |
* A pledge is an amount of funds (expressed as a percentage of the loan amount) that must remain on deposit at the Credit Union for the life of the loan. It is not security or collateral for the loan. After diligently making payments and paying off the loan, the borrower will have “earned” the pledged funds and have access to a ready “nest egg”. If the loan becomes delinquent and is deemed uncollectible, the pledge is applied to the loan balance prior to sending the loan to Collections.
Note: With the exception of the Fully Secured Loans, the APR that is offered to the applicant is determined by the underwriting process. The applicant’s ability to re-pay, credit history, income, expenses and debt-to-income ratio are analyzed in order to determine the appropriate APR.