Choosing the loan that is right for you www.unfcu.org
Agenda Consumer loans overview Choosing the loan that is right for you Qualification requirements Documentation requirements How to apply 2
Consumer loans overview 3
Benefits of UNFCU consumer loans No applications fee or pre-payment penalties are required. Free Credit Life Protection of up to $55,000 is automatically included for peace of mind in the event of your passing. Fixed and variable rates as well as secured and unsecured loan options are available. Loans are available both for specific needs and multi-purpose initiatives. 4
Secured and unsecured loan options UNFCU offers both secured and unsecured loans. Secured loan: Requires the member to provide collateral to the lending institution. Generally lower interest rates than unsecured loans Good way to build or establish a credit history Unsecured loan: No collateral is required. Issued based only on a borrower s creditworthiness The borrower s promise to pay is guaranteed by their signature. Due to increased risk with no collateral, rates may be higher for an unsecured loan than they are for a secured loan. 5
Who can apply for UNFCU unsecured loans Employees and retirees of the UN with a current or prior professional or field service contract, and their family members, are eligible if they earn income or receive a pension from the UN joint pension fund in any eligible currency as long as they are in a location that is not subject to UNFCU account restrictions. UN General Service Staff and National Professional Officers located in select countries can be eligible for either unsecured loans or for the Local Staff Loans. View the list of eligible countries on unfcu.org. UN consultants with more than six months of continuous employment who are in an eligible country can also qualify for unsecured loans. Each loan has additional eligibility restrictions. To minimize exposing our members to hardships in repaying loans that are in US dollars, we continuously evaluate and update our list of loan eligible countries based on factors such as local economic and political conditions. 6
Fixed and variable interest rate options UNFCU consumer loans offer either fixed or variable interest rates. Fixed interest rates: Remain the same for the duration of the loan Variable interest rates: Can increase or decrease over time, but are often fixed for an introductory period (typically six months) All current rates are posted on www.unfcu.org/loanrates 7
UNFCU consumer loans for specific needs Education Loan: Finance your own education or that of a loved one at any institution. Automobile Loan: Purchase a new or used vehicle, or refinance an existing car loan. Debt Consolidation Loan: Simplify your loan payments by consolidating your loans. Home Improvement Loan: Finance improvements to any home that you own. International Home Loan: Purchase a home or purchase land outside of the US, or refinance a mortgage loan outside of the US. 8
UNFCU multi-purpose loans Signature Loans: Finance a variety of needs, from paying taxes to covering relocation expenses. Checking Line of Credit: If you have a UNFCU checking account, open a line of credit for overdraft protection or to use as a loan. Local Staff Loans: Designed for UN General Service staff and National Professional Officers in select countries Loans Secured with Deposits: Use the funds in your UNFCU savings or share certificate accounts as collateral to secure these loans. 9
Signature Loan and Signature Loan Direct Signature Loan Direct Borrow up to $50,000*. There is minimal paperwork - only proof of income is required. The full approved amount may be paid directly to you. Signature Loan Borrow more than $50,000 up to $150,000*. The approved funds are paid to the service provider(s). No collateral is needed to secure either loan. * Your approved loan amount could be less than the amount you requested due to other loan obligations you have with UNFCU. Other factors including, but not limited to, credit quality and debt-to-income ratio may also impact your final loan terms. 10
Local Staff Loans United Nations General Service staff and National Professional Officers located in eligible countries can apply for our fixed rate Local Staff Loans to finance various initiatives. Unsecured Local Staff Loan Borrow up to $75,000 or 100% of your gross annual income, whichever is less*. Receive the funds without providing collateral to secure the loan. Partially Secured Local Staff Loan Borrow up to 200% of the balance in your UNFCU savings, checking, or money market account. The funds pledged in your account will be used to secure the loan so you will not be able to access the pledged amount against which you have borrowed. * Your approved loan amount could be less than the amount you requested due to other existing loan obligations you may have with UNFCU. Other factors including, but not limited to, credit quality and debt-to-income ratio may also impact your final loan terms. 11
Loans Secured with Deposits All members can use this loan to borrow up to 100% of their existing UNFCU savings or share certificate account balance. Because the loan is fully secured, the rate will typically be more competitive than a partially secured loan. Members in countries eligible for unsecured loans can borrow up to 150% of their existing UNFCU savings or share certificate account balance. How secured loans work: You will pledge funds from your savings or share certificate accounts to be used as collateral to secure the loan. You will only have access to the unpledged funds, but you will continue to earn dividends on all of the funds in your account(s). As you repay the loan, you will regain access to your pledged funds, equivalent to the amount you have paid off on the loan. 12
Checking Line of Credit Use a Checking Line of Credit to finance a variety of initiatives or as overdraft protection for your checking account. How a Checking Line of Credit works: We will automatically transfer the funds you need from your Checking Line of Credit to your checking account if you do not have sufficient funds to cover a payment. You can easily transfer funds from your Checking Line of Credit to your savings or checking accounts to finance any initiative. Only pay interest on the amount you borrow or use for overdraft protection. As you pay off the balance, the credit line is replenished so you can continue to borrow from it. 13
UNFCU consumer loan amounts UN consultants who have continuous UN contracts or related employment of six or more months and who are located in an eligible country can apply for unsecured loan amounts totaling $10,000 to $30,000, depending on the length of their continuous contract. For other eligible members, UNFCU lending policy permits a combined individual maximum amount of unsecured credit extended to be no greater than $150,000 including unused lines of credit, or $225,000 if the applicant has or is applying for an International Home Loan. Your approved loan amount could be less than the amount you requested due to other loan obligations you have with UNFCU. Other factors including, but not limited to, credit quality and debt-to-income ratio may also impact your final loan terms. 14
Choosing the loan that is right for you 15
Choosing the loan that is right for you Our intuitive loan application makes it easy to find the right loan to fit your needs. Visit www.unfcu.org/apply to access the system and start the application process. Select your currency of income. Select the purpose for which you intend to use the loan. Select your desired rate type. The loan system will automatically point you to the loan that fits your needs. 16
Upload documents For an easier application process, our system allows you to securely upload required documents directly to the platform. 17
Monitor your application The application system also allows you to view your application history and monitor the status of your loan applications. 18
Qualification requirements 19
Loan qualification requirements Factors taken into consideration for loan qualification are: Ability to repay Creditworthiness Established credit or borrowing history Lending eligibility 20
Ability to repay In order to qualify for a UNFCU consumer loan, you must show that you have the ability to pay off the full amount of your loan. Your debt-to-income ratio is typically how a lending institution decides the affordability of your loan request based on your income and obligations. Your debt-to-income ratio is calculated using: A ratio of your monthly debt payments relative to your monthly income The likelihood of your current income continuing at the same level 21
Creditworthiness This is a risk assessment of how likely a borrower is to default on their obligation to pay back their borrowed debt. Good credit history shows a lender that you can borrow money responsibly. If you have a good credit history, you will typically find it easier to get approved for a loan. For members in the US with a social security number, lenders typically use credit reports to assess creditworthiness. Generally, the higher your credit score, the easier it is to be approved for a loan Members in the US can request a copy of their credit report by contacting one of the three credit reporting agencies below: Experian (www.experian.com) Equifax (www.equifax.com) Trans Union (www.transunion.com) 22
Established credit/borrowing history A good credit score or borrowing history greatly increases your chances for qualifying and being approved for a consumer loan. A good credit history is shown by: Timely repayment of current and past loans and lines of credit Avoiding excessively applying for credit loans On-time payments can be assured by: Filling out a payment option form for monthly automatic payments Accessing online accounts to make payments through online banking Wire transfers 23
Documentation requirements 24
Required documentation If you apply for a loan online, our online loan application will outline the documents you will need to submit. Members applying for a loan will generally be asked to present: Income and employment information Receipts or other documentation justifying the purpose of the loan and what it will be used for Two personal references Signature Loan Direct is the exception where only proof of income is required. 25
How to apply 26
How to apply Visit www.unfcu.org/apply Contact us: Telephone: +1 347-686-6000 (toll-free numbers: www.unfcu.org/contact) Email: email@unfcu.com Skype: unfcu.skype Web-chat: please click on the Begin a WebChat session button on www.unfcu.org/contact In-person: addresses and hours of operation for our branches and representative offices are posted on www.unfcu.org/locations 27