Loans

Loan Types

The Alfred Allegany Educational Employees FCU offers two types of consumer loans, Automotive and Unsecured.

Automotive

• Automotive loans can be used to purchase a new or used car, truck or motorcycle. We do not provide automotive loans for motor homes, snowmobiles, recreational vehicles (RV), all-terrain vehicles (ATV) or agricultural equipment.
• The credit union is listed on the vehicle title as a lien holder and the vehicle is used as collateral. When there is collateral, a loan is “secured” and the interest rate is lower than an “unsecured” loan because the collateral is a form of loan guarantee.

Unsecured

• An unsecured loan is a personal loan that doesn’t require any collateral. Some recent examples of uses include:
  • Home Improvements
  • Vacations
  • Educational Expense
  • Credit Card Debt Consolidation
  • Appliance Purchases
    

Member Eligibility for Loans

Automotive

• Motor vehicle loans are available immediately upon activating a membership.

Unsecured Loans

• Membership – 30 days or less – No loans Available
• Membership – between 30 days and 3 months - $500 plus any pledged share balances
• Membership – between 3 and 6 months - $2,000, plus any pledged share balances
• Membership – Over 6 months – $15,000, plus any pledged share balances
• No single loan may exceed 10% of the Credit Union’s share balance
  

Loan Repayment Terms

Automotive

New vehicle repayment terms are available up to 72 months. A new vehicle is defined as one that has never been titled or has been financed for less than 90 days.

Used vehicle repayment terms are available up to 60 months depending on the age and NADA value of the vehicle per the following table:

Unsecured

The rates for unsecured loans are based on your Credit Score, the term of the loan and the debt ratio of the borrower. Your approximate debt ratio can be calculated by dividing the total of your monthly obligations by your monthly gross income. The guidelines for amount of loan and maximum debt ratio are: