A guide to understanding consumer loans www.unfcu.org
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Agenda
Consumer loans overview
Application process
Qualification requirements
Documentation requirements
How to apply
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Benefits of UNFCU consumer loans
No application fee or pre-payment penalties.
Free Credit Life Protection of up to $55,000 is automatically included for peace of mind
in the event of your passing.
Fixed and variable rates as well as secured and unsecured loan options are
available.
Loans are available both for specific needs and multi-purpose initiatives.
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UNFCU offers both secured and unsecured loans.
Secured loan: Requires the member to provide collateral* to the lending institution.
Generally lower interest rates than unsecured loans
Good way to build or establish a credit history
Unsecured loan: No collateral* is required.
Issued based only on a borrower’s creditworthiness
The borrower’s promise to pay is guaranteed by their signature.
Due to increased risk with no collateral, rates may be higher for an unsecured
loan than they are for a secured loan.
*Collateral is an asset that a borrower pledges to secure the repayment of a loan. The collateral will be forfeited to the lender if the borrower is
unable to repay the loan.
Secured and unsecured loan options
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Fixed and variable interest rate options
UNFCU consumer loans offer either fixed or variable interest rates.
Fixed interest rates: Remain the same for the duration of the loan.
Variable interest rates: Can increase or decrease over time, but are often fixed
for an introductory period (typically six months).
All current rates are posted on www.unfcu.org/LoanRates.
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UNFCU consumer loans for specific needs
Education Loan: Finance your own education or that of a loved one at any institution.
Automobile Loan: Purchase a new or used vehicle, or refinance an existing car loan.
Debt Consolidation Loan: Simplify your loan payments by consolidating your loans.
Home Improvement Loan: Finance improvements to any home that you own.
International Home Loan: Purchase a home or purchase land outside of the US, or
refinance a mortgage loan outside of the US.
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UNFCU multi-purpose loans
Signature Loans: Finance a variety of needs, from paying taxes to covering relocation
expenses.
Checking Line of Credit: If you have a UNFCU checking account, open a line of credit
for overdraft protection or to use as a loan.
Local Staff Loans: Designed for UN General Service staff and National Professional
Officers in select countries.
Loans Secured with Deposits: Use the funds in your UNFCU savings or share
certificate accounts as collateral to secure these loans.
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* Your approved loan amount could be less than the amount you requested due to other loan obligations you have with UNFCU. Other factors
including, but not limited to, credit quality and debt-to-income ratio may also impact your final loan terms.
1 Collateral is an asset that a borrower pledges to secure the repayment of a loan. The collateral will be forfeited to the lender if the borrower is
unable to repay the loan.
Signature Loan and Signature Loan Direct
Signature Loan Direct
• Borrow up to $50,000*.
• There is minimal paperwork.
• The full approved amount may be paid directly to you.
Signature Loan
• Borrow more than $50,000 up to $150,000*.
• The approved funds are paid to the service provider(s).
No collateral1 is needed to secure either loan.
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* Your approved loan amount could be less than the amount you requested due to other existing loan obligations you may have with UNFCU.
Other factors including, but not limited to, credit quality and debt-to-income ratio may also impact your final loan terms.
Local Staff Loans
United Nations General Service staff and National Professional Officers located in eligible
countries and who meet other eligibility criteria outlined on unfcu.org can apply for our fixed
rate Local Staff Loans to finance various initiatives.
Unsecured Local Staff Loan
Borrow up to $75,000 or 100% of your gross annual income, whichever is less*.
Receive the funds without providing collateral to secure the loan.
Partially Secured Local Staff Loan
Borrow up to 200% of the balance in your UNFCU savings account.
The funds pledged in your account will be used to secure the loan so you will not be able
to access the pledged amount against which you have borrowed.
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Loans Secured with Deposits
All members can use this loan to borrow up to 100% of their existing UNFCU savings or
share certificate account balance. Because the loan is fully secured, the rate will typically
be more competitive than a partially secured loan.
Members in countries eligible for unsecured loans can borrow up to 150% of their
existing UNFCU savings, checking or share certificate account balance.
How secured loans work:
• You will pledge funds from your savings or share certificate accounts to be used as
collateral to secure the loan.
• You will only have access to the unpledged funds, but you will continue to earn
dividends on all of the funds in your account(s).
• As you repay the loan, you will regain access to your pledged funds, equivalent to
the amount you have paid off on the loan.
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Checking Line of Credit
Use a Checking Line of Credit to finance a variety of initiatives or as overdraft protection
for your checking account.
How a Checking Line of Credit works:
• We will automatically transfer the funds you need from your Checking Line of Credit
to your checking account if you do not have sufficient funds to cover a payment.
• You can easily transfer funds from your Checking Line of Credit to your savings or
checking accounts to finance any initiative.
• Only pay interest on the amount you borrow or use for overdraft protection.
• As you pay off the balance, the credit line is replenished so you can continue to
borrow from it.
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Required documentation
If you apply for a loan online, our online loan application will outline the documents you will
need to submit. Members applying for a loan will generally be asked to present:
Income and employment information
Receipts or other documentation justifying the purpose of the loan and what it will be
used for
Two personal references
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Apply online
Our intuitive loan application makes it easy to find the right loan to fit your needs. Visit
www.unfcu.org/apply to access the system and start the application process.
Select your currency of income.
Select the purpose for which you intend
to use the loan.
Select your desired rate type.
The loan system will automatically point
you to the loan that fits your needs.
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Upload documents
For an easier application process,
our system allows you to securely
upload required documents
directly to the platform.
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Monitor your application
The application system also allows you to view your application history and monitor the
status of your loan applications.
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All the ways to apply
Go to www.unfcu.org/apply
If you have any questions, contact us:
• Telephone: +1 347-686-6000 (toll-free numbers: www.unfcu.org/contact)
• Email: [email protected]
• Skype: unfcu.Skype
• Web-chat: please click on the ‘Begin a WebChat session’ button
on www.unfcu.org/contact
• In-person: addresses and hours of operation for our branches and representative
offices are posted on www.unfcu.org/locations