a guide to understanding consumer loans

A guide to understanding consumer loans

www.unfcu.org

2 UNFCU | serving the people who serve the world ®

Agenda

Consumer loans overview

Application process

Qualification requirements

Documentation requirements

How to apply


Consumer loans overview


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.


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


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.

http://www.unfcu.org/LoanRates


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.


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.


* 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.


* 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.


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.


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.


Documentation requirements


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


The application process


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.

http://www.unfcu.org/apply


Upload documents

For an easier application process,

our system allows you to securely

upload required documents

directly to the platform.


Monitor your application

The application system also allows you to view your application history and monitor the

status of your loan applications.


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

http://www.unfcu.org/apply

http://www.unfcu.org/contact

http://www.unfcu.org/contact

http://www.unfcu.org/locations

a guide to understanding consumer loans

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