Share Secured Loans use part of the balance in your Share Savings account as collateral for your loan. The money must be in a S1 or S2 Share Savings account and a freeze will be placed on the amount of the loan to avoid accidental withdrawal. You will continue to earn dividends on your savings, while getting one of the best rates for borrowing!
After each payment, the “frozen” amount in your Share Savings account will be decreased to match the new, lower loan balance, so your savings will gradually become available for withdrawal. Multiple accounts can be pledged for a specific percentage of the loan.
Share Secured loans are available for up to 10 year terms. They are popular with borrowers trying to reestablish credit and for family members to arrange for relatives to get low interest rates by agreeing to pledge their own shares as collateral.