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Share Secured Loans

Unlock the Potential of Your Savings Account

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Leverage Your Savings with a Share Secured Loan

Whether you need funds for a major purchase, debt consolidation, or unexpected expenses, our Share Secured Loan offers a smart and secure borrowing option that leverages your existing savings. By using your share account as collateral, you can benefit from lower interest rates and flexible terms while still earning dividends on your savings. This loan is an excellent choice for those looking to build or improve their credit without tapping into their hard-earned savings.

Benefits of a Share Secured Loan

Lower Interest Rates: Enjoy rates that are lower than those of unsecured loans.
 
Continued Earnings: Your savings continue to earn dividends even while they are used as collateral.
 
Flexible Loan Amounts: Borrow up to the amount in your share account.
 
Credit Building: On-time payments can help improve your credit score.
 
Easy Approval: With your savings as collateral, approval is often quicker and easier, even if you have a limited credit history.

How It Works

Apply: Submit your application for a Share Secured Loan online or at one of our branches.
 
Loan Amount: The loan amount is secured by the funds in your share account, up to the balance of your savings.
 
Interest Rate: Benefit from a lower interest rate due to the secured nature of the loan.
 
Repayment: Make fixed monthly payments over the loan term. Your savings remain intact and continue to earn interest.
 
Access to Funds: Once the loan is fully repaid, your collateral is released, and you gain full access to your savings.

Secured Loan Rates

Secured Loan

Max Term


(Months)

APR*


as low as
Share Covered 84 5.25%
Credit Builder Loan (Max $2,000) 18 13.00%
CD Secured Loan (No Money Market, IRA, or Club Accounts) 84 APY + 3.50%

Frequently Asked Questions

A Share Covered Loan, also known as a Share Secured Loan, is a type of loan in which the borrower uses funds from their savings or share account as collateral. This loan allows you to borrow against your savings without withdrawing the funds, and it often comes with lower interest rates due to the secured nature of the loan.
Yes, even though the funds in your savings account are being used as collateral, they will continue to earn dividends during the life of the loan.
The amount you can borrow is typically based on the balance in your savings account. In most cases, you can borrow up to the full amount of your share balance, although the exact amount may vary.
If you're unable to repay your Share Covered Loan, the funds in your savings account that are being used as collateral may be used to pay off the remaining balance of the loan. However, this could negatively impact your savings and credit score, so staying on top of payments is important.
Your payment history on a Share Covered Loan will be reported to the credit bureaus. Making on-time payments can positively affect your credit score, while late payments or defaults can harm it.
Yes, People Driven Credit Union allows early repayment of Share Covered Loans without penalties. Paying off the loan early can save you money on interest and free up your savings more quickly.
The main difference is that a Share Covered Loan is secured by your savings, which allows for lower interest rates and easier approval. An unsecured loan does not require collateral, so it typically comes with higher interest rates based on your creditworthiness.
A Share Covered Loan can be an excellent way to build or improve your credit. Because it's secured, it's often easier to get approved, and as long as you make on-time payments, it will positively impact your credit score.
A Share Covered Loan can be used for various purposes, including home improvements, debt consolidation, large purchases, or covering unexpected expenses. Its flexibility makes it a versatile borrowing option.
Yes, it is possible to get a personal loan with bad credit, but it may come with higher interest rates and stricter terms. Consider lenders who specialize in bad credit loans, or use a co-signer to improve your chances of approval and secure better rates.
You may give us a call at 248-263-4100 to speak with the loan department.
PDCU has partnered with GreenPath Financial Wellness to help our members get back on track with their finances and credit. Please call GreenPath at 877-337-3399 and let them know you’re a PDCU member and would like to make an appointment with a rep!
Yes!  All eligible loans can be skipped once per calendar year for a fee of $35. Fresh Start Auto Loans, Lines of Credit, Mortgages, Commercial Loans, and Credit Cards are excluded.
  1. To make a payment via online banking with funds already in your account, log in and select 'transfers'. Select where you want to transfer from and which loan you would transfer to.
  2. Log into iTalk (telephone teller) and make your payment. Option 3 for payments.
  3. To make a payment with a debit/credit card, call (248) 263-4100.
  4. Set up an auto-transfer from your People Driven account or attach an auto payment to your direct deposit that comes into your account. Give us a call at (248) 263-4100 or stop by any of our five branches.
  5. Have us set up an auto-payment from your other financial institution. Please call us at (248) 263-4100, and we can send you the proper form, or you may stop by any of our five branches.
  6. You may also mail in a check payable to People Driven Credit Union, 24333 Lahser Rd, Southfield, MI 48033

Disclosures

Membership Requirement:

All accounts and loans require membership at People Driven Credit Union. Membership is available to individuals who live, work, worship, or attend school in the State of Michigan, as well as relatives of current members. To complete an application for any account or loan, you will need the following information:
  • A valid Driver's License, State ID, or Passport with your current address
  • Your Social Security Number
A Membership Share Savings Account is required to establish membership at People Driven Credit Union. Your $5 deposit into this account secures your share in the credit union, giving you access to our full range of services and benefits. The Annual Percentage Yield (APY) for this account is 0.01%, and the minimum deposit is $5.00.

 

 
*APR = Annual Percentage Rate: The actual APR and loan term are subject to approval and may be determined upon the borrower’s creditworthiness, the amount borrowed, and the type, value, age, and condition of the collateral offered to secure the loan (when applicable). Rates are effective as of today and are subject to change.
 
Payment Example: Monthly payments of $20.00 for each $1,000 borrowed at 6.55% APR for 60 months.
 
E H L. People Driven Credit Union is an Equal Housing Opportunity Lender NMLS #776727
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