A Shared Secured Loan can offer a lower rate than other types of loans because it uses funds in a share account. The member’s shares are “frozen” for the duration of the loan. The specified amount of the shares is held by the credit union until the loan is repaid in full.
With a Share Secured Loan:
- Funds borrowed can be used for virtually anything
- Collateral from your share account may lower your rate
- You can earn dividends on the full balance in your account