Loan Application Eligibility Requirements

Eligibility:

To be eligible for a loan you...

  1. Must be a member of Sisters Hospital Employees Federal Credit Union (the Credit Union)

  2. Any member who is currently employed may apply for a loan, provided that the member is of legal age to enter into a binding contract.

General Information:

The following will be considered during the approval process:

  1. Debt Ratio

  2. Credit History

When filling out the application (incomplete applications will be denied and/or returned):

  1. Fill out the application completely, in ink

  2. Sign the application 

  3. Have joint applicant and co-signers sign the application

  4. List all outstanding debt

  5. List all income that you would be using to repay the loan

  6. Attach proof of income, ie: pay stubs, with the application (these will be returned to you)

A credit check will be made on each applicant.  The fee for this is the responsibility of the applicant.

Loans in good standing may be refinanced, see the Loan Policy for further details.

Permanent disability or death and/or temporary disability insurance can be purchased at the member's option.

Co-Signers:

If your loan is approved with a co-signer, both the member and co-signer must be present to sign the promissory note.  Should the co-signer be unable to appear in person, the promissory note may be taken to him/her for signature and witnessed by a notary public.

Car Loans:

New Cars:

  1. Loan may not exceed the amount of the money the dealer requires to purchase the car.

  2. The stated interest rate is 5.5% to 12.5% and financing may be for up to 5.5 years (66 months). The actual rate will be determined by the members Empirica Score.

  3. The Credit Union must secure a lien on the automobile.  A certificate of insurance providing proof of collision coverage must be presented before a check is issued.

Used Cars:

  1. Loan may not exceed the NADA book value listed for the car.
  2. The stated interest rate ranges from 6.5% to 13.50% and may be for up to 5 years (60 months).
  3. The Credit Union must secure a lien on the automobile.  A certificate of insurance providing proof of collision coverage must be presented before a check is issued.
  4. Generally, loans will not be granted for a used vehicle more than 7 years old.
  5. If it is documented that the car is either a classic or that there is a proven record of the vehicle holding its market value over the long period of time, a loan may be granted.
  6. Loans for buying a car that you had previously leased are Used Car Loans.

Secured Loans:

  1. A loan where your shares are held in your account until the loan is paid.
  2. Loans may be secured by shares in your Regular, Vacation or Christmas accounts.
  3. For a fully secured loan, the amount in your share account can not fall below the current value of the loan. 
  4. Fully secured loans have a stated interest rate of 5.9% to 8.5% and may be taken for up to 4 years (48 months).

Unsecured Loans:

  1. Do not require you to maintain shares equal to nor partially equal to the loan amount.
  2. The stated interest rate is 6.9% to 18.9% for up to 3 years (36 months).
  3. With the exception of special loan sales, only two (2) unsecured loan is allowed at one time.
  4. The maximum unsecured loan is $10,000.

Rejected Loans:

  1. Notification of Denial will be mailed.
  2. You may consult with a member of the Loan Committee and reapply.
  3. You are entitled to a free credit report when credit is denied.  Information for obtaining a credit report is on the Notification of Denial.
  4. If your loan is denied and you so desire, you may have your loan application reviewed by the Board of Directors.

Payment/Non-Payment:

Should you leave your employment or stop payroll deductions, you must contact the Credit Union to arrange for your monthly payments.  Failure to do so could result in the Credit Union recalling the entire balance immediately.

A penalty of 3% the monthly payment will be charged for loan payments 15 or  more days delinquent.  We do report delinquencies to the appropriate reporting agencies for inclusion in your credit report.

 

Please stop in or call us at 716-862-1472 for a loan application.