Loan Policy
THE LOAN POLICY
IS SUBJECT TO CHANGE WITHOUT NOTICE.
The Credit Committee considers loan applications every Wednesday,
with some holiday exceptions. If approved, the check may be picked up the
next business day. An individual may wait a maximum of one month to pick up a
loan check after the application receives approval by the Credit Committee.
Circumstances may extend the time period after a review by the Credit
Committee. Those members who have retired from the field of membership schools
have the same borrowing rights and responsibilities as they had before
retiring.
There is a cap of $40,000 on loans to an individual at any one
time except for Share loans and Home Equity loans. The limit of total loans to
an individual, except for Shares Loans is $75,000. In addition, a member
may not carry more than three loans at any one time with the exception of
Shares Loans.
Credit applications must be completed by the close of business
Tuesday to be considered by the Credit Committee at their weekly meeting.
Since most applications take a minimum of 15 minutes to complete, please plan
your visit to allow enough time for all necessary paperwork. If you are unable
to visit the office to apply for a loan, our Customer Service Staff will be
happy to mail the necessary paperwork to you. You may also print an application
for Signature, Co-Maker, Shares, Teacher Required Continuing Education (TRCE),
New and Used Vehicle Loan using the link on the left. You will need 
to view the loan application. Please
be sure to print both sides of the application and contact the office with any
questions you may have, as incomplete and/or illegible applications may not be
able to be processed. After the application is completed, please bring
or send the application to the office for approval, a customer service
representative will contact you to arrange the completion of the remaining
paperwork. Home Equity Loan applications are available by e-mail, upon request.
The Credit Union reserves the right to request a Credit Bureau
Report on any member requesting a loan.
Currently,
the following Loan Options are available to BCTFCU Members:
Signature loans are available only to those persons currently
employed in, or retired from, the Field Of Membership
(FOM) schools. Signature loans are an unsecured loan amount of $5,000 or less
and may be obtained for up to 48 months. The credit committee may require
any applicant for this loan to change to a co-maker loan for loan security
purposes.
Co-Maker loans are available to all members of legal age who are
financially able to repay the loan. Co-maker loans are a loan secured by
another party signing stating they will assume the loan obligation in the event
the borrower is unable to pay. They include amounts of $12,000 or less and may
be obtained for up to 48 months. The Cosigner must also be of legal age and
financially able to pay the loan in the event of default of the
member/borrower. An individual may be a co-maker on only one loan from this
Credit Union at a time.
Share loans are available to any member who pledges his/her shares
as security for the loan with a loan cap of shares balance less two months
interest, and may be obtained for up to 60 months. Shares pledged as collateral
continue to collect interest from the Credit Union at the current dividend
rate. Pledged shares may be withdrawn only as payment on the secured
loan.
Teacher Required Continuing Education Loan
Teacher Required Continuing Education (TRCE) loans are available to any teacher
requiring continuing education. The loan maximum is $5,000 and may be borrowed
for up to 24 months. Enrollment verification will be required. Any
member obtaining a teacher education loan may not obtain a new Signature loan
until the Teacher Education Loan is paid off.
If a Signature, Co-maker, Shares or Teacher Education loan is
refinanced, the interest on the old loan(s) must be paid to the date that the
new loan is granted. A 3% charge on the unpaid balance of the old loan
will be made if the interest rate on the old loan is lowered to a new loan rate.
One half of the original principal must be paid back before a loan may be
refinanced or there will be a 1% fee on the unpaid balance of a loan being
refinanced at the same rate.
New Vehicle loans can be obtained for amounts of $40,000 or less for
up to 72 months.
Used Vehicle loans can be financed for amounts of $30,000 or less. Used vehicles two years old or less may be financed for up to 60 months; vehicles over 2 years old may be financed for up to 48 months.
New and Used vehicles will be financed up to 90% of the
dealer’s asking price. Members wishing to take advantage of dealer
cash-back incentives are encouraged to do so as refinancing with the Credit
Union is always available.
Since there are numerous methods of calculating interest, make
sure you check the total dollar amount of interest to be paid on your vehicle
loan rather than loan percentages. Financial institutions are required by
law to inform customers of not only the loan percent but the total dollar
amount of interest that will be paid.
Home Equity loans are available to members wishing to borrow on
their current residence. Home Equity loans may be taken for 5 years, 7
years, 10 years, or 15 years. The maximum amount that may be borrowed is
$50,000 and the minimum that may be borrowed is $5,000. There is a
non-refundable application fee of $150 which is applied to additional fees
incurred. For current Home Equity fees, and additional information,
please contact the office staff.
The credit union lends up to 80% of the equitable value of your
home. This is determined by taking the market value of your home multiplying by
80%,then subtracting the balance owed [(Market Value x .80) - Balance Owed =
Available Equity]. We will only accept 1st or 2nd mortgage position on your
home; however, if you have more than one mortgage, we may be able to assist you
through consolidation.
Loans of $50,000.00 require Title Insurance, not provided by this
credit union. Appointments are recommended for initiating a Home Equity Loan or
you may call the office and request the initial paperwork be mailed to you.
BCTFCU
reserves the right to request a Credit Bureau Report on any member and/or
comaker requesting a loan. BCTFCU issues reports to the Credit Bureau on all
loan accounts monthly.
