Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Taking A Secured Loan From Greater Central Texas Federal Credit Union

28. November 2018 Administrator Blog (0)
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

Things To Know About Unsecured Loans

16. October 2018 Administrator Blog (0)


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Secured Loans Vs Unsecured Loans

25. May 2011 Administrator (0)

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.  

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