This is a loan secured by shares and character in accordance with our loan policy and normal lending criteria policies. Normal lending criteria apply, and therefore the member must be in good standing with the Society with respect to their current obligations to the Credit Union.

This loan is ideal for those members who wish to borrow, but currently do not have sufficient available* shares to allow them to borrow enough to meet their needs.

Available Shares or “Unencumbered Shares” refers to the shares that you have that are not already being used as collateral for an existing loan.

Maximum Loan Amount: $60,000.00

Maximum Loans to Share is 2:1 – the total value of Loans owed to the Credit Union must be less than or equal to 2 times the value of the member’s shares after the loan is disbursed.

If you borrow $60,000.00

And have $5,000 in Shares available, then the loan would be disbursed as follows:

• $25,000.00 to Shares and $35,000 for your use.

The Loan of $60,000 is secured by your existing $5,000 in shares plus the additional $25,000 from the Loan proceeds = $30,000 Shares + Character*

Character is built with the Society based on your good payment history of previous loans, and/or your savings activity. Your willingness to set up a Salary Deduction will be considered as a positive factor.

And have less than $5,000 in available shares (e.g., $2,000 in available shares) then the loan would be disbursed as follows:

• $28,000 to Shares and $32,000 for your use.

The Loan of $60,000 is secured by your existing $2,000 in shares plus the additional $28,000 from the Loan proceeds = 30,000 Shares + “Character”.

Interest Rate: 1% Monthly on Reducing Balance.

The 1-2-3 Loan would be added to your existing Personal/Mortgage loans– your payments for all your loans, excluding the ‘Take a 5” and “Stress Free” loans, would be re-calculated/ rescheduled into one monthly payment.

REQUIREMENTS