Savings, Loans, and Lending

Savings Accounts
Also known as share accounts, these accounts, through regular weekly, bimonthly, or monthly deposits, will help your savings and NECFCU grow. Dividends are paid on a quarterly basis to accounts with $500 or more. Our easy direct deposit service allows your employer to send a portion of your paycheck directly to your savings account. Your account is federally insured up to $250,000 by the National Credit Union Share Insurance Fund. Please call our office for current rates.

    •Regular Deposit
    •Payroll Deduction
    •Dividends
    •Direct Deposit

Loans
NECFCU offers affordable loans to its members with savings accounts of $100 or more. These loans are vital to the individuals and communities that they live and work in (see Member Stories).

Types of Loans offered
                Rate
 Unsecured Personal
 18.00%
 Secured Personal
 (Call for Rates)
 New and Used Car
        36 months
        48 months
        60 months

4.00%
5.00%
6.50%
 Small Business up to 5 years
8.00%
 Share Secured
2.00% over last dividend paid
(4.50% up to 24 month loan/minimum $50.00 payments per month)
 First/Second Mortgage
 Up to 10 Years (Call for Rates)
 Fresh Start/Credit Rebuilding
4.50%
 Home Improvement
(Call for Rates)
 Grace Loan
 18.00%
 Tax Refund Loan
 18.00%
 Special Occasion Loan
 15.00%
 PayDay Advance
18.00%

Share-Secured Loan
Fresh Start credit rebuilding loans demonstrate NECFCU Community FCUs commitment to its low-income membership. Fresh Start loans are share-secured loans that enable the borrower to repair his/her credit and establish a regular pattern of savings. The amount borrowed is deposited and frozen in the member's account for the term of the loan. A member makes regular monthly payments (principal + interest) to the credit union to pay off the loan. When the loan is paid off, the member will have the entire amount of the loan plus interest earned on shares in his/her account. If the loan is paid off successfully, the credit union will report this information to the credit bureaus.

This loan helps our members in two ways:
1) It is a way for members to begin to establish or repair their credit history. By successfully paying off a share-secured loan, members will have a positive track record with the credit union and a positive report on their credit history.
2) It is a type of forced savings plan for members who want to save money for a particular purpose but have had difficulty maintaining a program of regular savings. Some members may find it easier to reach their savings goal if they know that they are legally obligated to make regular payments to the credit union, and that the payments they make are accumulating in their account as savings.

    •Interest Rate: 4.50%
    •Amount: $300 minimum - $3,000 maximum
    •Term: 6 months-24 months

Penalties:
- 1 missed payment: amount due will be transferred from savings to the loan; borrower will be
notified
- 2 missed payments: balance of loan will be paid off from savings and loan will be closed

To avoid delinquency in loan payments, credit union staff works with the member from the onset to determine a monthly payment schedule that is affordable to the member. Once the loan is made, the member must continue to make monthly payments for the term of the loan.

Banking
NECFCU offers loans, money orders, direct deposit and electronic funds transfer. These services are vital to all of our members and are encouraged to be used according to the “pay yourself first” principle. While some members may save more than others, these services are vital to our Tenderloin and South of Market members who do not have access to financial services at a regular financial institution. Fringe financial institutions include the many check cashing, ATMs and wire service stations that charge exorbitant fees and as a result drain individuals as well as the community’s productive assets.

Services
At the heart of the Community Development Credit Union (CDCU) philosophy is that the provision of financial services is just one important role among many that a CDCU plays. Programs like Fresh Start loans and payday check cashing demonstrate NECFCU’s commitment to its low-income membership. While these financial services are important, NECFCU strives to serve its community not only as a financial institution, but also as a neighborhood institution and a learning Institution.

As a neighborhood institution, NECFCU has shown continued interest in community building through branch expansion, new programs and partnerships with other community organizations (see More About NECFCU) As a learning Institution, NECFCU educates its members and community through its quarterly newsletter, budget counseling and individual meetings.

PayDay Plus SF
PayDay Plus SF is a San Francisco government program that provides reliable payday lending programs for San Franciscans. The purpose of this program is to provide responsible small dollar loans of up to $500, with low interest rates, financial counseling, and an extended repayment term. The program is designed to help San Franciscans avoid high-interest rate payday loans that often trap borrowers in a cycle of debt. The borrower must be employed, have direct deposit with the credit union and have a checking account. *Member must be with the credit union for 90 days before they can apply for the loan. 

For-profit payday lenders may charge annual interest rates of over 400%, and the industry relies on 90% of their revenue from borrowers who repeatedly renew or reopen their payday loans. As a result, the typical borrower usually pays around $500 in interest for a $300 loan, and still owes the principal, according to the Center for Responsible Lending.

Chex System
The ChexSystem is a collected database used by banks and credit unions that determine if potential customers will be too great a risk to the banking institution. Banking institutions will report members if accounts are closed with negative balances or false information is provided upon opening an account. The report will remain on the database for up to five years. NECFCU welcomes those on the ChexSystem to open accounts upon attending a budgeting workshop.

Small Business Lending
San Francisco Community Business Resources, Inc. (SFCBR) is a non-profit organization whose aim is to build sustainable communities by supporting local entrepreneurs and established small businesses primarily from San Francisco’s low-income neighborhoods. Individual business consultation and mentorship services from SFCBR are free and provided primarily to help them achieve their financial and business objectives and obtain the tools and resources to gain stability and self-sufficiency.

Direct Deposit
NECFCU introduced this service in August 1999 in an effort to make member’s income more immediately accessible. This service has helped members to avoid fringe “financial institutions” to cash their checks and avoid expensive wire services.