Loan Policies

Loans are available to all members in good standing. Membership is designated by maintaining a $25.00 balance in a Regular Share Account. Credit Union officials and employees must adhere to the same credit criteria standards that all members adhere to. Retired members are eligible for a loan. Credit Union allow members to borrow money in order to meet the members needs and that borrowers have the character, capacity, capital and collateral needed in order to assure the credit union that all new loans are a safe investment.

We offer consumer loans for New and Used Auto’s, Personal, Home Improvement Loans and Home Equity Loans. All can be paid by payroll deduction if you so elect.

Our Personal Loans have a loan saver program that is special. With this program, you agree to deposit 15% of the monthly loan payment into a special account, from which you cannot withdraw or borrow against, and we will reduce your interest rate by 1.5%. For example, if your payment is $100.00 per month, you would agree to pay $115.00. The $100.00 would be applied to the loan payment and the $15.00 would be deposited into the Loan Saver Account. This account earns Dividends and once the loan saver account equals the balance of the loan, you can either pay off early or continue to pay the loan for full term and then transfer your saving in the Loan Saver Account to your Regular Share Account. We are encouraging you to save as you borrow and you gain a lower interest rate plus save money at the same time.

The minimum amount that is allowed is $500.00 and the maximum is $5000.00. The maximum term is 48 months.

Loan Against Share & Share Certificate

Members can borrow any amount over the $25.00 membership requirement in a Regular Share or in a Share Certificate Account, at 3% over the rate being paid. Any term is allowed. All pledged loans will be immediately approved.

New Car Loans

We allow 90% of the list price for new car. Before a check can be issued, we must have Purchase of Agreement & receive a Registry of Motors (R.M.V.) form listing W-G Federal Credit Union, 530 Grafton Street, Worcester, MA 01604 and receive an Insurance Binder with C.U. as loss payee. The title must carry the name of the Credit Union as Lien holder and remain in our possession until loan is paid in full. The member is required to have a valid insurance policy and carry Fire, Theft and Collision, Option 1 and Option 2. Failure to carry proper Insurance can result in repossession by the Credit Union. If another person’s name is on the title, that individual must sign the note as Owner of the Collateral.

Used Car Loans

The Credit union will allow Wholesale Value as stated in the Black Book. If the vehicle is two (2) years old or newer, the maximum term will be 48 months. If the vehicle is older the maximum term will be 36 months. There may be six (6) months added to the term of the loan if the vehicle deems it necessary, subject to the approval. The check will be issued to the borrower and the dealer. The title must be issued in our name as lien holder and remain in our possession for the term of the loan. Before a check can be issued, we must have a Purchase of Agreement, RVM & Insurance Binder listing us as lienholder. Option 1 & 2 same as New Car Loan.

Home Improvement Loans

The maximum amount to be loaned as a Home Improvement will be $10,000.00, with maximum term of 72 months. If the property is owed by two (2) persons, both must fill out the application and sign the note once it is prepared. We will need a copy of the deed, tax bill and an estimate of the work to be done.

Refinancing an Auto Loan from another Institution

A copy of registration must be given when applying for this loan. If you are paying a high interest rate, check with us for “TRADE YOUR LOAN KEEP YOUR CAR”.

Trailer and Recreational Vehicles

All Trailer and recreational vehicles financed through the credit union will adhere to the same conditions as the new & used auto loan policies. Also rates for these vehicles will be higher than auto loans due to the added risk involved.

Home Equity Loan

The W-G Federal Credit Union issue Home Equity Line of Credit as second mortgages ONLY. If there is a second mortgage on the property, this must be paid in full. We will not accept third place on the mortgage.

We offer Home Equity Line of credit to our membership with a maximum Loan to Value ratio of 80%.

The Maximum term to pay on a Home Equity of Credit is 15 years. The borrower and/or borrowers may draw on the money for 5 years from date the first money is dispersed. If all funds are taken, they may bring the loan up to the original amount within 5 years. The entire loan must be repaid with in 15 years from date of issue. You must provide the credit union with a copy of your deed, tax bill & mortgage statement.

MasterCard

W-G Federal Credit Union MasterCard is at a fixed 12.50% APR, with no annual fee.