Loan Policy and Rates
Pine Belt Federal Credit Union Loan Policy
Loan Terms and Interest Rate Guidelines
The interest rates listed below apply to all members who qualify for a loan with the credit union. The interest rate category is determined by information contained in the Credit Bureau Report. Credit ratings over seven years old and bankruptices over ten years old will not affect determination of the category. In case of joint applications, the interest rate will be determined using the information of the applicant based on the higher number of negative ratings in file. The following categories and accompanying interest rates do not represent final approval of a loan request, but serve as a guide to determine the interest rate a member will be charged for a loan. The Credit Union's loan officers have the authority to approve or deny a member's loan request. Two loan officers must sign any loan denied by the Credit Union.
- Category A: Credit Score 680 or Above.
- Category B: Credit Score 640-679.
- Category C: Credit Score 600-639.
- Category D: Credit Score 599 or Below.
*A negative credit rating is defined as creditor's rating on any credit file account, opened or closed of R/I2, 3, 4, 5, 6, 7, 8, or 9, a charged off account, a judgement, suits, tax lien, repossession, or bankruptcy.
Interest Rates and Repayment Period
The interest rate on all new and used vehicles, tractors and motor homes will be 5.9%, except to members who have a collection letter in their file or to members with a credit rating worse than category A.
|
Loan Type
|
Months
|
A
|
B
|
C
|
D
|
| New autos (never been titled: 100% purchase price+tax,title) | |||||
| **Special Rate if Credit Score is > 700 | 60-72 | 4.0% | |||
| Loan Amount less than $20,000 |
60
|
5.9%
|
8.9%
|
12.9%
|
18.0%
|
| Loan amount $20,000 or more |
72
|
5.9
|
8.9
|
12.9
|
18.0
|
| Used automobiles/tractors/motor homes | |||||
| (100% of NADA avg. trade-in loan value)* | |||||
|
Current model & 1 yr old (Current year ends on 12/31)
|
60
|
5.9%
|
8.9%
|
12.9%
|
18.0%
|
|
2 years old
|
54
|
6.4
|
9.4
|
13.4
|
18.0
|
|
3 years old
|
48
|
7.9
|
10.9
|
14.9
|
18.0
|
|
4 and 5 years old
|
42
|
8.4
|
11.4
|
15.4
|
18.0
|
|
6 and 7 years old
|
36
|
9.9
|
12.9
|
16.9
|
18.0
|
|
Older than 7 years
|
24
|
10.4
|
13.4
|
17.4
|
18.0
|
| New ATV, Boat, Motorcycle, Trailer, etc. | |||||
| (80% Purchase Price.) |
72
|
7.5%
|
10.5%
|
13.5%
|
18.0%
|
| Used ATV, Boat, Motorcycle, Trailer, etc. | |||||
| (80% of NADA ATV or boat guide loan value) |
60
|
7.5%
|
10.5%
|
13.5%
|
18.0%
|
| Share Secured |
60
|
4.5
|
4.5
|
4.5
|
4.5
|
| Certificate Secured | maturity date | Higher of 2% above certificate rate | |||
|
Loan Type
|
Months
|
A
|
B
|
C
|
D
|
| Signature: Maximum loan up to $2,500.00 | |||||
| with debt ratio of 35% or less |
24
|
11.0
|
18.0
|
18.0
|
18.0
|
| with debt ratio of above 35% |
24
|
14.0
|
18.0
|
18.0
|
18.0
|
| Real Estate (80% of the appraisal value) |
120
|
7.5
|
10.5
|
13.5
|
18.0
|
Interest rates are reduced by 0.50% on all loans when the loan is repaid by using some source of direct payment except on term loans (loans with one payment), share secure loans, or loans already at 5.9% or less. No rate will be reduced below the Certificate Rate.
*Excludes some makes/models, eg., Suzuki, Kia, hyundai, Daewoo. Typically will finance 80% max. NADA avg. trade-in value for those used models; or 80% of purchase price + tax, title for new models (80% MSRP max.).
