GCTFCU Blog | All posts tagged 'secured loans'

Meaning of Secured Loan

When a borrower pledges an asset as collateral for a loan, such a loan is called a Secured Loan. The debt/loan is secured against the collateral. If the borrower fails to repay the loan amount, the creditor can sell the asset to get back a part of the money that was lent.

Secured Loans offer benefits such as lower rates of interest, high borrowing limits and long repayment terms.

Greater Central Texas Federal Credit Union offers Secured Loans to its members at competitive rates. The loans provide members with a financial boost when sudden expenses crop up; for a vacation, home improvement, purchasing a new car or a pre-owned vehicle, etc.

A Secured Loan is granted against collateral that is either equal in value of the loan amount or greater (at least 20 percent greater).

For a shared Secured Loan, the loan is backed by a share account that is held with Greater Central Texas Federal Credit Union. This excludes an IRA. It is necessary for the balance in the share account to be equal to or more than the loans balance (through its life).

Benefits of taking Secured Loans from Greater Central Texas Federal Credit Union:

Fast approvals: Loans are approved within 24-48 hours of receiving a completed application form and verification of income.
Convenience of payment: Services like direct deposit, payroll deduction and automatic transfer are offered to members to facilitate repayment of the loan.
Lower interest rates.
Promote savings.
Skip-a-payment option.
Higher borrowing limits.
Easy application process.
Flexibility: There is an option of converting fixed-rate loans to variable-rate loans. Even the amount of premium can be varied as per the convenience of the borrower.
Helpful and friendly staff.
Involvement of members to vote on new policies.
No minimum balance restraint.
Programs to help members manage their budget and unexpected expenses.
It is locally run.
Insured by the National Credit Union Share Insurance Fund (NCUSIF) – A Federal government agency.

GCTFCU is a not-for-profit financial cooperative that operates for the common benefit and welfare of its member-owners. Its members consist of people from the local community’s churches, schools and also employers. All members are equal owners. For more information on availing Secured Loan from Greater Central Texas Federal Credit Union, call at - (254) 690 - 2274

While procuring a loan it is important to know what kind of loan you should opt for. Basically there are two types of loans available. The first one is Secured Loan – Where certain collateral is kept as security by the lender. The second one is Unsecured Loan – Where loan is given without keeping any collateral. A person needs to make a sound choice between the two. The choice of the same would depend on various factors like:

Purpose for which the loan has to be taken.
Your financial capability
Loan Tenure
Monthly repayment capacity
Loan amount

What are Secured Loans?

Secured loans as the name suggests are loan that are provided by financial institutions against something that you own (asset). In case the loan is not paid, the lender can take possession of the asset to cover their losses. In case of auto loans, depending on what vehicle you are buying and the cost of the same; financial company decides what asset can be taken as collateral. It can be your property or any other asset that has similar value in comparison to the loan amount.

Advantages of Secured Loans

Lower interest rates.
Depending on the value of the asset, you can borrow more loan as compared to unsecured loans.
As your secured asset assures lender that their money is safe, you can get a loan even if you have a bad credit history.
Longer repayment periods.

What are Unsecured Loans?

As the name suggests unsecured loans are the loans given by financial companies and lenders without keeping anything as collateral against the loan amount. As the loan is given without any security, the risk for lender is high. As a result most of the unsecured loans attract high rate of interests and the repayment period is also usually short. The rate of interest is also decided on the basis of your credit history and your repayment capacity.

Advantages of Unsecured Loans

You don’t need a property or any other expensive assets to take an unsecured loan.
For small purchases, unsecured loans are cheaper than credit cards etc. In case you need small loan for few months, then you should go for unsecured loans to fund your purchase.

To obtain cheap and secured auto loans easily and quickly, consider Greater Central Texas Federal Credit Union only. We can be contacted at 254-690-2274.

Cheap Auto Loan - 72 Month Auto Financing

Credit unions are financial cooperatives owned and operated by their members. Their primary purpose is to provide financial services to their members, like - savings accounts, loans, and other financial products. The Greater Central Texas Federal Credit Union offers a range of savings solutions designed to help its members achieve their financial goals.

The following is a list of savings options that credit unions offer:

Regular Share Savings

Regular share savings accounts function similarly to traditional savings accounts, enabling you to deposit and withdraw funds while accumulating dividends (interest) on your balance. These accounts often require a minimal initial deposit and may have minimum balance requirements to avoid monthly fees. They offer a secure and convenient way to save money and potentially grow your funds over time.

Money Market

Money market accounts offered by credit unions are an ideal choice for individuals looking to maximize their savings while maintaining liquidity. These accounts typically offer higher interest rates compared to traditional savings accounts, making them an attractive option for those seeking to grow their funds.

Christmas Club

Christmas club accounts are a smart way to save for the holiday season. These accounts help you set aside money throughout the year, specifically for Christmas expenses. They work by allowing you to make regular deposits into the account, building up your savings over time. Generally, these accounts have a set maturity date, when the funds become available for withdrawal.

Vacation Club Accounts

Vacation club accounts function similarly to traditional savings accounts but are designed for earmarking funds for vacations. Members can deposit money regularly throughout the year, gradually building up their vacation fund. Credit Unions often offer competitive interest rates on these accounts, helping members grow their savings faster.

Certificates of Deposit (CDs)

Credit unions ' certificates of Deposit (CDs) are like savings accounts but with fixed terms. When you put money into a CD, you agree not to withdraw it for a certain period, ranging from a few months to several years. In return, you earn a better interest rate.

Individual Retirement Accounts (IRAs)

Individual Retirement Accounts (IRAs) in credit unions offer a reliable way for individuals to save for retirement. Credit unions offer competitive rates and personalized service for IRA accounts. By opening an IRA in a credit union, individuals can benefit from a variety of investment options tailored to their risk tolerance and financial goals.

For more information about Credit Unions in Killeen, TX, you can visit the Greater Central Texas Federal Credit Union at 3305 E. Elms Rd., Killeen, TX 76542, or call 254-690-2274 to learn more. For the latest updates and financial tips, follow the credit union on social media or visit www.gctfcu.net.

Taking A Secured Loan From Greater Central Texas Federal Credit Union

Things To Know About Unsecured Loans

Secured Loans Vs Unsecured Loans

Secure Your Tomorrow: Greater Central Texas Federal Credit Union Savings Solutions

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