What Is A Secured Loan?

A Secured Loan is a product closely associated with Credit Unions. A Secured Loan allows members to pledge their savings to get a much-reduced loan rate.

This means that if a member has €5,000 in their shares and wants to borrow €3,000, they can get a reduced rate if they pledge €3,000 from their shares against the loan.

By pledging their Shares, the member cannot access the €3,000 until the loan is paid back. However, they can access the remaining €2,000 for example based on the example above. The amount pledged reduces as the loan is being repaid and is only subject to keeping enough shares to cover the remaining loan balance.

Why Take Out A Secured Loan?

If you have gone to the effort of building up savings over time, why dip into them the first time you need some money? While it may be tempting to withdraw your savings, it’s not always the right thing to do. We all know how difficult it is to build up our savings.

By taking out a Secured Loan, not only do members benefit from a lower interest rate compared to a regular loan, but they also get to keep their savings and benefit from the Life Savings Insurance they have accrued with their savings.

Benefits Of A Secured Loan

Some of the key benefits of a Secured Loan are:

• Low-interest rate
• Keep your savings
• Immediate loan decision
• Flexible repayment options
• Free loan protection insurance (T&Cs apply)

To learn more about Secured Loan, call us at (01) 299 0400 and we would be delighted to help you with your application.