Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Reasons To Borrow Secured Loan

17. May 2019 Administrator Blog (0)
Secured loans, also referred to as collateral loans are backed by an asset (usually a home or car) that is pledged as security to the lender. You can also get a secured loan against your savings account, a certificate of deposit or anything of value. In case the borrower is unable to return the loan, the lender has the right to take possession of the collateral and sell it to compensate for the unpaid amount. Lenders often seek collateral that is of a greater value than the amount of loan.

Common types of secured loans are mortgages, secured credit cards, secured personal loans and home equity loans. Secured loans offer numerous benefits to the borrower, some of which are listed below:

  • Enhances Credit Rating: Secured loans are easy to acquire even if the borrower’s credit rating is low. However, a borrower can work towards building his credit score over time by making timely payments towards his secured loan.
  • Lower Interest Rates: Another major reason for borrowing secured loans is their rate of interest. Since the loans are secured with a collateral, lenders feel more confident and may disperse loans at lower interest rates.  
  • Flexible Terms: Borrowers who avail secured loans enjoy flexible repayment terms. A consumer can choose a repayment schedule that suits his financial circumstances. The repayment terms may be as long as 30 years. Lenders offer longer terms because real estate pledged as security, usually appreciates over time and this adds to the value of collateral while the loan is being repaid.
  • Usage: Secured loans can be used for a variety of purposes provided the purpose is legally valid. A consumer can use the money for investing, home improvement, weddings, funeral expenses, moving expenses, etc.
  • Larger Loans: With secured loans, borrowers enjoy the benefit of being able to borrow larger amount of money for a longer duration. This is because of collateral in the form of tangible assets guaranteed to the lender by the borrower. Lenders know that if for any reason the borrower defaults to pay back the loan amount, collateral can be sold to recover the unpaid amount of loan.
  • Easy To Acquire: The main requirement for a secured loan is collateral. Thus, if you have collateral in the form of a valuable asset such as a piece of real estate, a car, precious jewelry, a house or deposited cash, you can easily acquire a secured loan.
Greater Central Texas Federal Credit Union offers affordable secured loans to its members in Killeen. The loan officers at the credit union help the members in choosing loan amount and terms as per their financial situation. To know more about secured loans in Killeen, call at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX - 76542.

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GCTFCU Blog | Terms You Must Know Before Taking Home Loan
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Terms You Must Know Before Taking Home Loan

5. November 2015 Administrator Home Loans (0)
When applying for a home loan, there is a lot of paperwork and documentation that you need to undertake. There are a number of jargons that you need to be familiar with for a hassle-free loan process. Here is a list of some of the common terms that you may come across while taking a home loan in Killeen, TX:

  • Offer Letter/Sanction Letter: It is a formal confirmation letter given by the financial institution from where you are taking the loan. This letter states that you have been duly considered to be one of the loan applicants. However, this letter does not confirm the approval of a home loan. The loan will only be sanctioned after verifying all the documents and eligibility criteria of the applicant.
  • Equated Monthly Installments (EMI): EMI is the amount you repay to your lender every month. It includes the principal repayment along with the interest amount. Three basic factors are considered while deciding your EMI. These include the principal amount, loan duration and rate of interest. An amortization schedule shows how your EMIs have been formulated over the period of entire loan term.
  • Pre-EMI: If you buy a property that is still under construction, you will be given only a part of the loan amount. You are required to make the interest payments on this partial amount. These payments are known as pre-EMI. This eventually means you will have to keep on paying more interest to the financial institution till the time your builder takes to complete the construction of the property.
  • Credit Appraisal: The process of credit appraisal involves looking at various factors before finalizing the loan. The financial institution will consider parameters such as income, age, savings, qualifications, work experience etc. They will also check the number of loans you are presently servicing. Your eligibility for the loan will only be finalized after scrutinizing all these factors.
  • Margin: It is important to note that any lending organization will not sanction you the entire amount required for your home. You can get up to 90% of the cost and the rest you will have to put in from your side. This balance amount is called down payment or margin.
  • Post-Dated Checks (PDCs): PDCs are scheduled for future dates and cannot be processed till the mentioned date arrives. Generally, the lending organization will ask you to give them post-dated checks for one to two years. These checks need to be addressed to the credit union or home loan company. The exact amount of EMI to be paid should be mentioned on these checks.
To know more about the home loan process, feel free to contact Greater Central Texas Federal Credit Union at (254) 690 – 2274.
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GCTFCU Blog | How Credit Unions Operate
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

How Credit Unions Operate

27. January 2020 Administrator Blog (0)


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GCTFCU Blog | Reasons To Get A Credit Union Car Loan
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Reasons To Get A Credit Union Car Loan

20. October 2012 Administrator (0)

Credit unions refer to the member owned cooperatives that provide financial assistance to a specific group of individuals. They are the best choice for those who want to purchase a new or used car as they help you save on a lot of money. The credit union members enjoy added benefits of reduced fees or costs related to the loan application or documentation. It is essential to be a member of the credit union to avail its services and for this you will have to fulfill the requirements of the specific credit union you wish to be a part of.

Financing your new or used car through a credit union could be beneficial in the following ways:

  • Availability of money in spite of the prevalent economic condition: Credit unions are extremely reliable for monetary assistance to their members as they always have money, even in times of an economic crisis. During such times, most of the financial institutions make their policies very stringent while giving funds and offer as few loans as possible. On the other hand, credit unions never face such a crunch situation and have healthy relations with most of the car dealers. Lending money is never an issue with the unions. 
  • Member oriented: Being member oriented is one such attribute, courtesy which, credit unions score an edge over other financial institutions. If at any point, their member faces any difficulties in repaying the loan, the credit union offers to assist in finding a way of dealing with the problem.
  • Competitive rates of interest and terms: Credit unions offer very competitive rates of interest to its members, which help in saving on a substantial amount of money in the long run. Their interest rates are comparatively lower because their main aim is to serve the members as against making profits. The terms and conditions of offering the loans are such that offer maximum convenience to the borrower. The service provided is instant as there is no requirement for approval from unending organizational levels as is in the case of other financial institutions.
  • Prompt loans: As soon as you complete the formalities of becoming a member, you are entitled to get a loan from a credit union. This is not the case with other financial institutions, in which there is a waiting period between becoming a member and being able to avail the benefits of membership.

We at Greater Central Texas Federal Credit Union provide you quick and cheap car loans in Texas. For more details, you can visit us at 3305 E Elms Road, Killeen, TX 76542. You can also call us at 254-690-2274.

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