Share Secured Loans
A TOHEFCU Share Secured loan enables members to obtain a loan using the funds in their savings account. TOHEFCU offers these loans with rates at 3% over the deposit rate being paid on the account securing the loan.
Any type of savings account may secure share secured loans (except IRAs). For the duration of the loan, the amount in the secured savings account must at least equal the outstanding loan balance and cannot be withdrawn. The amount of the loan payment that goes toward the principal balance is correspondingly made available in the savings account.
The secured savings account continues to earn dividends while being used as collateral.