HVFCU extends loans and lines of credit against pledges of NYSE, NASDAQ, or American Stock Exchange securities valued over $10. Flexible options allow you to take the money as a lump sum or use it as a line of credit.
- Loans and credit lines available from $500 up to 70% 1 of the previous day’s closing value of your stock.
- Your money keeps working because you keep any dividends earned on the secured stock.
Two Attractive Options
When you secure a loan with a pledge of stock as collateral, you can choose among these options:
- Principal and Interest: This option provides you with a lump sum ($1,000 minimum), which you pay back in monthly principal and interest payments for up to 96 months. Only fixed rates are available with this program.
- Line of Credit: There is a $500 minimum on the line of credit, and you can obtain additional funds in $500 increments. Monthly payments are 2% of the outstanding balance. Only variable rates are available with this program.
For both options, the stocks securing the loan or line of credit are held by HVFCU during the term of the obligation. You may have only one stock-secured loan at a given time.
|Account||Minimum / Maximum Financing||Fixed APR||Variable APR|
|Rates are accurate as of 10/27/16 and are subject to change without notice. APR = Annual Percentage Rate.|
|Stock (NYSE & AMEX)||70% of previous day’s closing 1||4.34%||na|
|Stock Line of Credit||70% of previous day’s closing in increments of $500 1||na||6.40 2 3|
1 Maximum loan or line is 70% of stock value if used for business purposes. Borrowers may need to pay down loans or provide additional shares if share values fall and loan becomes under-collateralized. This happens when a loan balance exceeds 95% of the stock value.
Loan proceeds cannot be used for the purpose of purchasing stock, bonds or shares of most mutual funds, as defined in Regulation G.
2 The Annual Percentage Rate (APR) is subject to increase. The maximum rate is 18%.
3 The stated rate is discounted by .25% and includes a requirement that loan payments are automatically transferred from your savings, checking, or money market account for the life of the loan. The monthly payment is not decreased as a result of this discounted rate.
Apply for a Stock Secured Loan or Line of Credit
You can apply online for either a stock secured loan or stock secured line of credit. You can also stop into any of our branches or call us at 845.463.3011, Monday – Friday 8 am – 7 pm ET or Saturday 9 am – 5 pm ET to apply.
Servicemembers Civil Relief Act
The Servicemembers Civil Relief Act (SCRA) gives relief to individuals who are called to active duty in any branch of the military, including reservists or members of the National Guard. Servicemembers are provided interest rate relief on consumer and mortgage loans, relief regarding leases and protections regarding repossession, foreclosure, default judgments and eviction.
If you are a Servicemember and have questions about how SCRA affects your HVFCU loans, please call 845.463.3011 Monday through Friday, 8 am to 7pm ET and Saturday, 9 am to 5 pm ET. We will be happy to discuss any protections and programs that are afforded to you as a Servicemember.