SHARED SECURED LOANS
Smart, Low‑Cost Borrowing Backed by Your Savings
Use your shares as security to unlock low‑rate financing while keeping your money working for you.
Building Your Financial Future
How Share Secured Loans Work
When you apply for a Share Secured Loan with us, you use the funds in your share savings account as collateral. Here’s how it benefits you:
- Automatic Approval: Approval is guaranteed if you have the equivalent amount in your share savings.
- Interest Rates: You are charged 1.00% APR* above the dividend rate of your share savings for terms of 5 years or less.
- Building Credit: Your payment history is reported to credit bureaus, helping you build a positive credit profile. Learn about additional credit building options here.
- Collateral Release: As you make monthly payments, the hold on your savings account gradually decreases.
- Risk Management: If you default on the loan, the funds held as collateral can be used to repay it.
Benefits of Share Secured Loans
Future Savings: While you’ll pay a small amount of interest, improving your credit score may help you qualify for lower rates on future loans.
- Credit Building: Regular, on‑time payments can strengthen your credit score.
- Future Savings: While you’ll pay a small amount of interest, improving your credit score may help you qualify for lower rates on future loans.
- Protect Your Savings: Instead of withdrawing a large amount from your account, you can borrow against your shares and pay yourself back over time. For example, if you need a $15,000 HVAC replacement, using a Share Secured Loan allows you to keep your savings intact and stay on track with long‑term financial goals—making it much easier to replenish your balance through manageable monthly payments than replacing a large lump‑sum withdrawal.
Considerations
Before opting for a Share Secured Loan, be aware of the following:
- Frozen Collateral: The funds used as collateral are unavailable for use until the loan is repaid.
- Payment Responsibility: Timely payments are crucial; late payments can negatively impact your credit score.
- Emergency Funds: Ensure you have other accessible funds for emergencies.
How to Get Started
Visit our branch, or apply online. Our team is here to guide you through the process and help you every step of the way.
Invest in your financial future with Penlanco FCU’s Share Secured Loans — building credit responsibly, one payment at a time.
Share Secured Loan Rates
Share Secured loans with a term of 5 years or less are equal to the Share Savings APR plus a margin of 1.00%. Share Secured loans with a term greater than 5 years are equal to the Share Savings APR plus a margin of 2.00%. View the Share Savings APR here. *APR means Annual Percentage Rate.
| TERM | RATE |
|---|---|
| Up to 5 years | Share Savings Dividend Rate + 1.00% |
| Up to 10 years | Share Savings Dividend Rate + 2.00% |
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The Penlanco FCU Advantage
Member-Centric Service
As a member-owned credit union, we put you first. Our friendly and knowledgeable staff are dedicated to providing personalized service, helping you navigate the loan process with ease and ensuring you find the best loan solution for your needs.
Quick and Easy Application Process
Applying for a Share Secured loan at Penlanco FCU is simple and hassle-free. Our streamlined application process ensures you get the funds you need quickly, with minimal paperwork and fast approval times. Whether you apply in person or online, we make it easy for you to get started.
Trusted Community Partner
As a member-owned credit union, Penlanco FCU is deeply rooted in the community. When you borrow from us, you’re supporting an institution that reinvests in the local area and its residents. We’re committed to your financial well-being and the prosperity of our community.