Frequently Asked Questions
What is a share secured loan?
A share secured loan uses the money in your savings account or certificate of deposit as collateral for a loan. Because the loan is backed by funds you already have on deposit, the interest rate is lower than an unsecured loan. Your savings stay in place and keep earning interest while the loan is active.
Who can apply for a share secured loan at AGCU?
Share secured loans are available to churches, businesses, and nonprofit organizations. You will need to be an AGCU member to apply. If you are not already a member, you can join when you apply.
What can I use a share secured loan for?
Share secured loans can be used for a wide range of needs including equipment purchases, facility upgrades, and short-term operational expenses. They are a good option any time you need funds but want to keep your reserves in place.
Does my savings account still earn interest while it is being used as collateral?
Yes. Your savings or CD stays on deposit and continues to earn interest for the life of the loan. As you pay down the balance, the hold on your funds is gradually released.
What is a CD secured loan?
A CD secured loan works the same way as a share secured loan but uses a certificate of deposit as collateral instead of a savings account. The rate will still be lower than an unsecured loan, and your CD continues to earn interest during the loan term.
How is a share secured loan different from spending my savings?
With a share secured loan, your funds stay in your account the whole time. You are borrowing against what you have rather than spending it. This keeps your reserves intact in case other needs come up.
How do I get started?
Call us at 866-508-2428 or contact us online. We will reach out to discuss your options and help you figure out if a share secured loan is the right fit for your organization.