As a member of any credit union you often get help and suggestions to manage your money in the best possible way. You are often suggested about various products and services that can be useful for you. At Santa Fe which is the capital of the U.S. state of New Mexico, a new product has been launched which is known as shared security loans.
If you are not fully aware about this new product, share secured loans in Santa Fe then you can read the following FAQ to understand more about this new product.
What is share secured loan?
This is a facility to borrow money in the form of loan by using your savings as collateral. You could use your savings too in order to meet your expenses however in that case you may lose all other dividends that you are getting from your savings, which will be sacrificed. Instead of that you can use the loan money to meet your expenses and your savings remain intact. You will repay the loan by paying little higher interest than the average rate.
How the whole thing works?
Minimum amount that you can borrow is $200 to $500 and the maximum amount can be 80 to 100 per cent of your total savings. Your credit union will grant you the amount when you apply for it either by check or directly credit the amount in your checking account. You can repay the loan either through automatic monthly transfer from your checking account or deposit check every month.
Who can benefit from this scheme?
Particularly those who have bad credit report and due to that they are unable to obtain any loan from any other bank will be most benefitted. As there is very low risk and therefore the approval of loan will be almost immediate and nobody will check your credit report too. However, your credit history can have impact on your rate of interest.
When the fund that has been used as a collateral will be available with me?
This will depend upon the policy of your credit union. Some of the credit union will not allow you to access the entire amount till you repay the entire loan amount. However, you will continue to get your dividend as before. Some of the credit union who are little flexible will allow you to access a predetermined amount of money as you repay the loan in the form of monthly instalment.