Less Risk
Use your savings as collateral.
Get the best of both worlds.
Not a fan of dipping into your savings to pay for an expense? Need to build your credit? Use the balance in your savings or certificate account as collateral for a one-time advance. Borrow what you need while still earning dividends on your investment.
For loans pledged against a savings account, as the loan balance declines, the secured funds become available.
How does a savings pledge loan work?
A savings pledge loan uses the money in your savings account or certificate account as collateral against the amount you borrow. The amount you can borrow is determined by how much you have saved. Because the loan is secured with a monetary pledge, the lender doesn’t have to worry about recouping its losses if the borrower happens to default–making this lending option a lot less risky for lenders. In turn, this gives people looking to build credit the opportunity to borrow without having to have a good credit score.
Just like an unsecured loan, a savings pledge loan requires the borrower to make fixed monthly payments until the end of the loan term which can vary and go up to 144 months. At Hughes Federal Credit Union, secured funds from loans pledged against a savings account become available as the loan balance declines.
Rates
2.55% APR*
Main Share Savings Pledge Loan
Call for current rates APR*
Certificate Account Pledge Loan
Features & Benefits
- Up to 144 months (12 years)
- As the loan is paid off, secured funds become available to you
- Funds can be pledged from another person’s account
- Funds continue to earn dividends
Earn more
Gain dividends while you borrow.
Flexible Terms
Up to 144 months (12 years)Disclosures
Effective Date: 03-01-2025
*APR = Annual Percentage Rate. The maximum APR, for any type of loan, shall not exceed the limit set by applicable law(s). The loan rate will be the rate in effect when the loan is completed. Rates and terms are subject to change at any time. Please contact the Credit Union for further information.