- Loans using the balance in your savings account as collateral
- The rate for Share Secured Loans is 3.10% APR* (current as of 1/2025)
- The total amount secured equals the balance of the loan, less any accrued interest (funds secured in your savings account are released as the loan is paid back)
- Terms of up to 60 months available
Benefits:
Borrow from yourself:
A share secured loan lets you borrow money using your savings account balance as collateral. The financial institution “freezes” the amount you’d like to borrow. While that amount won’t be available for withdrawal, it will remain in your account and continue to earn dividends. Plus, since the funds are already on deposit, we don't need to check your credit qualifications before approving the loan.
At Austin FCU, you can borrow 100% of the balance in your savings account and as you repay the loan, your funds become available for your use or to withdrawal.
Enjoy lower interest rates than standard personal loans:
Standard Personal Loans have rates between 9.90% APR* and 17.90% APR*, depending on term and credit. Share secured loan rates are not based on your credit and are set at 3.00% higher than the current APY on the share account.
No credit pull necessary for a share secured loan:
Since the rate is the same for everyone and the loan is fully secured by cash on deposit, you will not get a hard inquiry on your credit when applying for a share secured loan.
Good payment history builds credit:
On-Time payments are reported to the credit bureau to help build/improve credit. The fixed payment amounts can help with budgeting to keep you on track and can often help to improve your credit score.
