Loan Program

Description

Union members usually get the best interest rates and lending terms from a credit union. But most credit unions do not lend more than $2,500, and even fewer will lend more than $5,000. This program provides a source for AFGE members to obtain unsecured loans from $2,500 up to $15,000 with a longer repayment period than banks and most credit unions. The interest rates are substantially lower than those of finance companies, where historically, union members borrowed larger sums.

Vendor

Household Bank, f.s.b.
700 Wood Dale Road
Wood Dale, IL 60191

Features

• Lower interest rates.
• Apply by mail or phone.
• No application fee.
• High loan amounts: $15,000.
• Longer repayment periods (up to seven years).
• Bills can be consolidated for lower monthly payments.
• Option to skip payments.
• 1/4% (.25%) reduction for automatic payment.

Eligibility

All current members are eligible to apply for these benefits. An annual fee is waived as long as the individual remains an AFGE member.

Compare Interest Rates

Finance companies often charge an interest rate of 19% to 26% or more.

Interest Rate

Interest rates are fixed for the life of the loan. The interest rate may vary depending on the applicant's credit history. The rate begins at around 12%.

This program is limited to members who reside in the United States, Virgin Islands and Puerto Rico.

Home Equity Loans

For members who own their own home, a home equity loan may be the best vehicle to borrow money. One advantage is that a home equity loan may be tax deductible, whereas a personal or unsecured loan would not be deductible. There are two options:

REGULAR HOME EQUITY:
Members may borrow up to 85% of the equity in their home, from a minimum of $5,000 to a maximum of $250,000. The maximum term is 15 years.

100% HOME EQUITY
This loan product meets the needs of a member who owns a home but currently does not have enough equity to qualify for a standard home equity loan. Members who qualify may borrow from $5,000 up to $25,000.

Special Features

• Members can choose a closed-end loan that provides a set time to repay the amount
• borrowed at a fixed interest rate OR
• Instead of borrowing a set amount, members can choose to have a line of credit with a pre-set amount available as needed.
• Members can save ¼% off the APR by choosing automatic re-payment through their checking account.

Interest Rates

The low interest rates are determined by the product and credit worthiness of the applicant.