SAVINGS AND SHARE ACCOUNTS
When you open your credit union account, your savings are called shares. One share equals $5.00. Members need at least $5.00 in their share account to earn quarterly dividends and to use other credit union services.

ARE YOUR SHARES SAFE?
YES! The Berea Credit Union is supervised by the State Department of Financial Institutions and your savings are insured to $100,000.00 by the National Credit Union Administration (NCUA).

PAYROLL DEDUCTION PLAN
Payroll deduction, often called the “ painless way to save,” is the authority given by a member to his/her employer to deduct a certain amount from each paycheck for deposit in his/her credit union account. You may start the payroll deduction at any time for the amount you want to deposit. College employees may obtain deduction plans from the credit union manager. Other members must contact the payroll officer at their place of employment.

MAKING DEPOSITS AND WITHDRAWALS
You can deposit money into your share account any time you wish. You can do this by mailing in checks or coming by the office. When you need to make a withdrawal, come by the office to sign a withdrawal slip and pick up your check. BCU reserves the right to require members to give up to 60 days notice on all withdrawals from share/savings accounts.

LOANS
Members having at least $5.00 in their share accounts are eligible for a loan. Certain restrictions may apply.

Loan applications may be made for any reasonable purpose, however, the Berea Credit Union does not participate in mortgage loans. Personal loans have precedence over car or truck loans in order to regulate cash flow and successfully manage the loan demand.

Examples of typical loan requests are: winter fuel purchases, automobiles, consolidation of bills, Christmas expenses, vacations, farming expense, and limited home improvement.

The overall limit of all unsecured loans is 15% of the member’s annual gross income up to $7,000.00 with a maximum term limit of 36 months. The aggregate limit of all secured and unsecured loans for any member may not exceed $30,000.

HOW TO OBTAIN A LOAN

Unsecured Loan
Basic information required on the loan application includes the amount requested and the purpose. Other debt and income information is also required. The loan application will be presented to the BCU Credit Committee along with available information concerning current share and loan status and past loan history. The Committee meets weekly to consider applications. Would your loan not be approved, you will be informed of the reason. There is a $10.00 processing fee that will be added to the loan if the loan is approved.

Secured Loans
A secured loan refers to a loan which is secured by the property being purchased, such as a car or truck, or by shares owned by the member. With a secured loan a lien is taken against the vehicle offered for security or a hold is placed on shares for security. All liens and holds for the secured loan are released after the final payment of the secured loan.

Application for a secured loan is the same process as for an unsecured loan. If a car or truck is involved, you will be asked to bring in a buyer’s order, if it is from a dealer, or if from an individual, the vehicle identification number and a description of the car. You will be required to pay a $21.00 lien filing fee.

HOW LONG DOES IT TAKE TO BORROW MONEY?
Loans receiving approval from the BCU Credit Committee are normally available the day following the regular weekly meeting of that committee. An applicant may call after the committee meets to see if the loan has been approved and to make an appointment with the BCU Manager to have the loan issued.

REPAYMENT OF LOAN
Method of repayment of a loan is established at the time the loan is approved. The term length of a loan can vary from 24 to 72 months, depending on the type of loan. There is no penalty for early repayment.

INTEREST RATES, FEES, AND DIVIDENDS

Why Is Interest Charged?
Interest is the charge levied for the use of a loan. Interest rates must be high enough to pay operating expenses and to provide a reasonable return to the savers in the form of dividends, yet low enough to make BCU one of the best places to borrow money.

Maximum Interest You May Be Charged on a Loan
The maximum legal interest that a credit union may charge at this time is 18% per annum. The BCU Board of Directors establishes current interest rates based on local market and operating needs of the credit union. Changes in interest rates will be announced by the credit union office. In most cases BCU interest rates are better than other lending institutions.

Fees that May Be Charged
There is a $10.00 processing fee for all approved loans. This fee is added to the principle of the loan when the loan is processed. If your loan application is not approved, there is no fee. If you have a secured loan (vehicle), there is a $21.00 lien filing fee which must be paid at the time the approved loan is processed. A dormant account fee of $5.00 per year will be charged if share balance is below $100.00 and there has been no activity by the member.

DIVIDENDS

Dividends are credited to all members with a share balance of at least $5.00.

Dividends are computed using the daily balance method.

Dividends are paid quarterly and posted on the last day of each calendar quarter.

Dividends are computed at a comparable rate of interest with other types of savings organizations in our area.

Credit Union dividends are subject to income tax. A 1099 statement will be mailed to you showing the amount of dividends credited to your share balance during the previous year. 1099 forms will only be sent for amounts of $10.00 or more.

INSURANCE OPTIONS

Credit Life Insurance
Available to BCU members at a low cost, Credit Life pays off the principal balance of a loan in the event that a member dies.

Credit Disability
Available to BCU members at a low cost, this insurance makes loan payments if you are off the job due to total disability. The insurance takes effect after you have been off work for at least 30 days.