OnPath Credit Union

Shared Secured Loans

Shared Secured Loans in Louisiana from OnPath FCU

Most people are familiar with vehicle and home loans, which are usually necessary to make big purchases. To qualify for these, you generally need good credit. But what if you’ve just graduated from school or started living on your own and haven’t generated enough credit history? You may be rejected for financing or be offered astronomical interest rates, all through no fault of your own. Fortunately, you can remedy the situation with shared secure loans.

How Does a Shared Secure Loan Work?

What exactly is a shared secure loan? Like most home and vehicle financing, it’s a collateral-based loan that provides a lump sum at the beginning and must be repaid with fixed monthly payments. The main difference, however, is what acts as collateral.

Instead of putting real estate or a vehicle on the line, you’re offering cash held in a certificate of deposit, money market or savings account with the financial institution. The lender gives you the agreed-upon amount up-front, then puts a hold on the account. Once you’ve repaid the loan, the hold is lifted, and you can once again access your funds.

Why Get a Shared Secured Loan?

You may wonder why anyone would borrow against the money they already have. There are a few reasons. First, it’s a good way to build your credit history, since this type of financing is relatively easy to get. Money already deposited in the financial institution may be considered more valuable than a truck that requires liquidation, so you don’t have to have the best credit or any credit at all.

There’s also the question of accessibility. Many people choose a certificate of deposits over regular savings accounts since they tend to have higher interest rates. However, this financial product requires the deposit to be left untouched for a particular amount of time. If you withdraw funds before the term is over, you usually incur a penalty. Taking a loan out on a certificate of deposit allows you to access funds in an emergency without losing money.

What Are the Benefits?

OnPath Federal Credit Union offers shared secure loans to its members with a variety of benefits:

  • Easy, fast application
  • Quick funding
  • No credit check
  • Low-interest rates
  • Continuing to earn interest on money in the held account

Why Choose Us?

When you need reliable funding, OnPath Federal Credit Union can assist. Our professionals can help you find the right financial product to meet your needs and are more than happy to answer any questions. To learn more, reach out to us at 800-749-6193 or via our online form.

*APR = Annual Percentage Rate. Introductory rate as low as 1.99% APR reflects 36-month term, includes all discounts, and is based on applicant meeting certain criteria. Estimated payment is $39 per month, per $1,000 based on rate of 1.99% APR for 36 months.

Finance charges begin on the date the loan is made and interest accrues during the payment deferral period. First payment is due within 90 days of loan disbursal. Other terms and conditions may apply. Offer subject to change without notice. For more details, contact 504.733.7274 or 800.749.6193. Offer expires 5.31.20. Insured by the NCUA.


Photo credit max-kegfire via Getty Images