Loan .. Loan Information
Loan Information
- Loan application request are taken Mondays and Tuesdays during normal business hours and dispersed on Thursdays and Fridays. Emergencies must be clearly stated at the time the application is taken.
- Loans to minor member sub accounts are limited to share secured or equal to the share balance.
- To recast a loan, a member’s loan balance must be half paid or within one (1) to two (2) payments of being half paid. (Members can refer to booklet)
- Additional payments can be made at any time on an active loan at the member’s discretion. Acceptable payments are money orders or cashier checks made payable to Local 1233 FCU. Neither checks nor cash will be accepted.
- A member must have their monthly loan payment plus their pledge amount (25% of original loan) in their account, when requesting a withdrawal.
- The Local 1233 Federal Credit Union recommend that all members elect the Credit Disability and Credit Life insurance on all loans.
- All loans must be approved by the Credit Committee.
- Any member applying for a loan must have six (6) months in the Credit Union. All loan applications must secure 25% of the loan amount in their shares plus one monthly loan payment.
- Any member may apply for a second (2nd) Signature Loan up to five thousand ($5000.00). This loan must be paid in a one (1) year period and have to meet the eligibility loan terms requirements. (SEE LOAN LIMITS and TERMS)
Loan Interest Rate Grid
Interest rates on signature loans are as follows:
- A loan at a rate of 14%
- B loan at a rate of 12%
- C loan at a rate of 12%
- D loan at a rate of 6%
- E loan at a rate of 18%
Interest rate on short term loans are as follows:
- These loans are at a rate of 18%
Interest rate on auto loans are as follows:
| Credit Score | Pricing Tier | Interest Rate |
| 750 & Above | Excellent | 1.49% |
| 700 – 749 | A | 1.99% – 2.50% |
| 650 – 699 | B | 2.99% – 3.50% |
| 550 – 649 | C | 3.99% – 4.50% |
| Below 550 | D | 4.99% – 5.50% |
Please Note:
These rates are reviewed on a monthly basis and are subject to change at the discretion of the Board of Directors.
Loan Interest Rate Terms
- Any term 1.49% (credit score 750 and above)
- Up to 60 months 1.99% (credit score 700-749)
- 72 months 2.50% (credit score 700-749)
- Up to 60 months 2.99% (credit score 650-699)
- 72 months 3.50% (credit score 650-699)
- Up to 60 months 3.99% (credit score 550-649)
- 72 months 4.50% (credit score 550-649)
- Up to 60 months 4.99% (credit score below 550)
- 72 months 5.50% (credit score below 550)
- Any member with insufficient credit or no credit history will be charged the higher interest rate of 5.50%
Other terms may apply based on member merit status and credit worthiness. Rates are subject to change under the discretion of the Board of Directors. Members must meet all qualifications; loand amount is subject to the credit committee’s approval.
Terms for refinancing an auto loan:
- Auto loans must be financed for 1 year or more before a member can refinance.
- Auto loans from other financial institutions will be refinanced at the current book value.