La Inmaculada Credit Union

Home > Services > Loans

Loans

Often we realize that to own we need to borrow. We all have dreams but how many of us can afford to fulfill one? At LICU we help you make those dreams possible. We know how expensive it is to borrow from other financial institutions and how burdensome it can be to meet those payments. That is why LICU offers the best interest rate and flexible repayment plan on loans to your shareholders. Members enjoy interest rate of 1% per month on the unpaid balance. The actual percent rate averaged between 7.5% to 8.5% you have the benefit of paying as low as $5.00 or $10.00 towards your loan amount.

A loan can be made by a shareholder three months after their account is opened. After a loan is approved the money will be distributed 3 months after. Note that all Payment plans vary depending on the customer.

Consider a loan of $10,000 for 4 years. The following tables illustrate the same amount borrowed at LICU and other financial institutions.

Table 1: Monthly payments for a period of six months at LICU
Loan Payment Principal Interest Balance
10,000 334.37 234.37 100.00 9,765.63
  334.37 236.71 97.66 9,528.92
  334.37 239.08 95.29 9,289.84
  334.37 241.47 92.90 9,048.37
  334.37 243.88 90.49 8,804.49
  334.37 246.32 88.05 8,558.17
Total 2,006.22 1,1441.83 564.39  
Table2: Monthly payments for a period of six months at other financial institutions.
Loan Payment Principal Interest Balance
10,000 334.37 121.87 212.50 9,878.13
  334.37 124.46 209.91 9,753.67
  334.37 127.10 207.27 9,626.57
  334.37 129.81 204.56 9,496.76
  334.37 132.56 201.81 9,364.20
  334.37 135.38 198.99 9,228.82
Total 2,006.22 771.18 1,235.04

Who qualifies for a loan?

New shareholders qualify to make a loan three (3) months after becoming a member. Once you begin to invest in your shares, your bargaining power also increases; hence, the more you save the more loans you can access. Also, loan approvals are dependent on the 5 C’s for borrowing.

5 C’s for Borrowing

Character — honesty and responsibility to repay, credit record
Capacity — ability to repay based on the terms of payment
Capital — shareholders assets and liabilities (shares and debts)
Conditions — economic issues affecting the member’s ability to repay
Collateral — item of value used as security for loans above shares

Note that all loans that exceed your shares must be secured by the following:

  • Mortgages
  • Bills of sales
  • Certificate title
  • Land titles debentures
  • Guarantors
  • Co-makers
  • Life insurance

Requirement for land title securities:

  • Evaluation
  • Title search
  • Site inspection
  • Mortgage
  • Memorandums

Estimated Fees:

  • Title search: $200- $300
  • Stamp duty: $15/$1,000
  • Filing Fees: $15
  • Documentation: $200-$300
  • Evaluation: $300

Approved loans have three (3) months to be fully disbursed from date of application.