Share Secured Loan
A share secured loan is backed by your savings account or share certificate. No credit check is needed. As the loan is paid down, the corresponding amount in the secured savings is automatically released for use.
Question: Why would I want to secure a loan with my savings accounts?
Answer: By securing your loan with shares in your account, you can enjoy a greatly reduced interest rate on the loan, regardless of credit score, while still earning interest on the funds used to secure the loan.
Question: Is the entire loan amount tied up until I pay the loan off?
Answer: No. As you make the monthly payments on the loan, the corresponding amount of principle payment is "released" from the share security and made available for you to use.