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General Information:
*Each loan requires a completed loan application
*Must present a current payroll check stub for income verification
*Revolving Credit advances are subject to Credit Committee approval
Loan Evaluation/Granting of Credit:
*Each loan is evaluated individually and confidentially
*Loan criteria for each loan:
a) productivity of the loan
b) borrower’s ability to repay
c) borrower’s credit worthiness
d) borrower’s current status and history
Loan Policies:
1. All loans are due and payable upon day of unemployment, unless the member’s loans are secured by a grantor or other collateral, or prior arrangements have been made. All loan applications will be judged in part by creditability, collateral and ability to pay back.
2. Loans are not insured against permanent and total disability after a member reaches his 60th birthday. Loans may be secured by Money Market Certificates. This type loan is due and payable on the date the certificate matures.
3. Members must have one share $5.00 before loan application will be considered.
4. The amount of signature, open end and/or personal loan a member may apply for is based as follows:
* MUST HAVE SAME YEARS OF CONTINUOUS INCOME AND BE A MEMBER OF THE CREDIT UNION FOR THE SAME NUMBER OF YEARS.
Amount to finance based on length of continuous income; membership; debt to income range.
Less than 3 years $1,000.00
3 years but less than 10 years $3,000.00
10 years and up $5,000.00
* Exceptions may be made on Membership requirements
5. Loans are made using shares in the credit union (shares pledged loans). These can be made in the amount in shares with up to 10 years to repay or they may be paid with an annual payment.
6. No renewal of closed-end loans will be approved unless a period of 6 months since origination date of last loan or renewal. Above is true only when maximum signature value has been borrowed or at discretion of Credit Committee.
7. Loans will not be granted to any member who has caused the credit union a loss.
WHAT AUTOS MAY BE FINANCED
All used automobiles listed in the NADA USED AUTO GUIDE may be financed or used as collateral. These items must be checked by a member of the Credit Committee or by a credit union employee. Amount that can be financed will be determined by the Credit Committee.
New Automobiles and Pickup Trucks: Amount that can be financed is 90% of the manufacturers suggested retail listing. No sales tax or title application fee unless it falls within the 90% will be financed. Length of time to finance new automobile is 60 months at discretion of the Credit Committee.
All automobiles and trucks must be insured with at least $500 deductible comprehensive and $500 deductible collision. The policy must contain a loss payable clause indicating Ferguson Federal Credit Union as lien holder. The cost of the insurance including liability insurance may be included in the loan, provided it does not exceed 90% of the manufacturers suggested retail listing. Failure to renew insurance policy will result in the note becoming due and payable.
New and used boats, motors, trailers, farm equipment, loan mowers and factor built farm trailers: Amount that can be financed is 80% of manufacturers suggested retail listing, not including sales tax, with up to 48 months to repay. Used equipment will be determined by a member of the Credit Committee for the amount to be loaned up to 48 months to repay.
New and used motorcycles: Amount that can be financed is 80% of manufacturers suggested retail listing not including sales tax. Used motorcycles will be determined by a member of Credit Committee for the amount to be loaned and length of financing up to 48 months. Insurance covering collision and theft must be carried on these motorcycles indicating Ferguson Federal Credit Union as loss payee.
CAMPERS AND MOTOR HOMES
New campers and motor homes will be financed up to 80% of the manufacturers suggested retail listing price (excluding sales tax) for up to 48 months. Used campers and motor homes over two years old will be financed up to 36 months not to exceed the loan value. Campers and motor homes over two years old will be appraised by a member of the Credit Committee for the amount to be financed and number of months for repayment. Insurance is required on all campers and motor homes indicating Ferguson Federal Credit Union as loss payee.
REAL ESTATE
Amount financed is 75% of certified appraisal value at a fixed rate for up to 10 years. Over 10 years is a variable rate. |
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