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Credit Building Loan Disclosures & Details


The current prime rate is: 8.50%. Rates effective as of May 2, 2024. Rates subject to change at any time.

Annual Percentage Rate (APR) is 3.00% above dividend earned.


Share Secured

Share Secured Loans are guaranteed by the balance in your UMassFive Share Savings Account or Term Share Certificate. Your Share Savings balance must always be equal to or greater than the balance of the loan. Because this type of loan does not require verification of income, disbursal of funds can be immediate upon signing the loan documents. The maximum loan amount is equal to the available balance in your regular Share Account or Term Share Certificate, with a period of repayment up to 10 years or at least $25.00 monthly. Loans secured by a Term Share Certificate must be repaid before the certificate matures and may be paid with a one-time payment instead of monthly payments. The interest rate for all Share Secured Loans is calculated at 3% above the annual percentage yield (APY).

Credit Builder

The loan proceeds are immediately deposited in a primary or secondary share account and placed on hold for the duration of the loan. Once the loan has been repaid the hold is removed and the loan proceeds are made available to the member. In essence, the member has “earned’ their loan proceeds through completing the loan repayment while building credit history. The maximum loan amount is $1,000; the minimum monthly payment is $25.00 with a maximum term of 36 months.

Payment example: 3.030% APR for 12 months equals $84.81 per $1,000 borrowed.


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