The Credit Builder Loan is a share secured loan which is designed to help members build credit history, regardless of whether they have funds available to pledge as collateral.
In a Credit Builder Loan, the loan proceeds are immediately deposited in a Primary or Secondary Share Account and placed on hold for the entire duration of the loan. Gradual de-pledging of the collateral is permitted. As the member pays down the loan, the paid down principal becomes available in the share.
Once the loan has been repaid in full, the hold is removed and the original loan proceeds are made available to the member. In essence, the member has “earned” their loan proceeds through completing the loan repayment, while also building credit history.
The Annual Percentage Rate will be fixed at the time of loan closing.
Credit Builder Loans are eligible to be covered by Debt Protection plans
Minimum Loan Amount: $500.00
Minimum Monthly Payment: $25.00
Maximum Amount: $2,000.00
Maximum Repayment: 24 months
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