What Exactly Is a Secured Loan?

A Secured Loan is a financial product closely associated with Credit Unions, designed to offer members a significantly reduced loan rate by leveraging their savings. Imagine you have €5000 in your savings and wish to borrow €3000. By pledging €3000 of your savings as collateral, you can secure a lower interest rate on your loan.

While the pledged amount is off-limits until the loan is repaid, the remainder of your savings remains accessible. For instance, with €5000 saved and €3000 pledged, you still have access to the remaining €2000. As you repay the loan, the amount of savings pledged diminishes accordingly, with the stipulation that enough savings remain to cover the outstanding loan balance.

Why opt for a Secured Loan?

You’ve diligently built up your savings, so why deplete them at the first sign of need? It may be tempting to dip into your savings, but it’s not always the wisest choice. We all understand the effort and sacrifice involved in accumulating savings.

Opting for a Secured Loan not only offers the benefit of a lower interest rate compared to a standard loan but also allows you to retain your savings and continue to benefit from the Life Savings Insurance tied to them.

Advantages of a Secured Loan

Here are some of the standout benefits of choosing a Secured Loan:

• Low-interest rate: Enjoy reduced borrowing costs.
• Retain your savings: Keep your hard-earned savings intact.
• Fast loan decision: Quick and efficient processing.
• Flexible repayment options: Tailor repayments to suit your circumstances.
• Free loan protection insurance: Extra peace of mind (T&Cs apply).

To discover more about our Secured Loan offerings, give us a call on (01) 299 0400. We would be delighted to assist you with your application and answer any questions you may have.