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Share & CD Secured Loans

Share or CD secured loans are a way for you to borrow, using your own savings as the collateral. Instead of using all your savings to make a purchase, thus losing out on all future dividends and your emergency safety net, you’re borrowing against that sum while your money stays in your account. 

In a share or CD secured loan, we will place a hold on your share or CD account for the amount you want to borrow against. Then, we will grant you the amount you requested in the form of a check or a deposit into your share account. The funds you are using as collateral will be available for you to use again as you pay down the principal balance of the loan. In the meantime, time shares cannot be withdrawn or transferred to a higher returning CD. Your shares or CD will continue to earn dividends while your funds are frozen. Your loan rate will be fixed for the life of the loan, but the share or CD rate will continue to adjust quarterly or at maturity.

Advantages of a share or CD secured loan:

  • Inexpensive. Interest rates on share or CD secured loans are a fixed amount as low as 1% APR above dividend rates on your savings account or CD. Since your account or CD is earning dividends throughout the life of your loan, the actual loan ends up costing you even less.
  • Convenient.  Once you’ve been approved for the loan, you can use the money in any way you’d like.‚Äč
  • Improve your credit score. We will report the loan just as we would a personal installment loan, so it will build credit history.

Share/CD Secured Loan Details:

  • 100% of share or CD account balance
  • Rates as low as 1% APR over the Share or CD rate
  • Up to 120-month term
  • Flexible payment options including single payment loan
  • Member may defer up to 2 payments at time loan is opened

Add on to your loan:

During the term of a loan, additional amounts may be borrowed and added to the outstanding balance.  Providing, the loan balance is $200 below the maximum loan limit allowed for that category and the loan balance does not exceed the value of the collateral. However, if the current rate is less than the original loan rate, then the loan will remain at its original rate.

If you are interested in learning more speak with your local credit union director or contact Energize directly at 405-478-0046 or admin@energize.coop.

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