Loans provided by Gateway CCU
GATEWAY OFFERS loans under two categories – secured facilities and unsecured facilities. There is no ceiling for the secured facility. However, the unsecured loans now have a ceiling of $800,000.
MOTOR VEHICLE LOAN
The institution’s motor vehicle loans include the financing of trucks and trailers up to 20 years old. This has made Gateway a market leader in that area, as commercial and private vehicles of this kind are covered at competitive interest rates.
The credit union finances vehicles that are up to 10 years old and the interest rate ranges from 11 to 12.5 per cent based on the age of the motor vehicle. For trucks and trailers and commercial vehicles, interest rates have also been reduced to 11.5 per cent and 12 per cent, respectively, coming from 14 and 16 per cent, with more years to pay and less share requirement.
STUDENT LOAN
Gateway has two education financing loan categories which are classified as an ‘education loan’ and a ‘student loan’. The student loan facility operates very much like the Students’ Loan Bureau, where payment is not required until up to four years after the loan is disbursed. As a result, a student is able to borrow, engage their parents as guarantors, for example, and repay after studies are completed. The interest rate for this loan is applied based on the collateral used. So, if it is a motor vehicle that is used as security, the rate is 11 per cent; if it is a truck, it is 16 per cent. There is an eight per cent interest rate if cash is used and 11.49 per cent if real estate is used.
With respect to the education loan, this facility requires that payment is made immediately after the first 30 days following disbursement. This loan is ideal for persons who are working and are going to school part-time and so are able to start making payments immediately.
BUSINESS LOANS
There are two categories of business loans – small and microbusiness loans. A small business operator can borrow up to $5 million as there is no restriction based on size, as long as affordability is established. These loans can be secured or unsecured and the interest rate is based on the collateral used.
Nevertheless, there are some vital requirements in order to get loan approval. There needs to be a business plan, or a business proposal if it is a new business the borrower is going to start. If it is an existing business, the borrower will need to present the current financial statements for the entity for at least the past year and projections for at least two years, in advance.
Licences or permits to operate the business, registration documents, income and expenditure statements are also among the required items. For persons operating as contractors, estimates and contract approvals they have received and copies of the approved contracts are also needed.
MORTGAGES
Mortgages have proved to be one of Gateway’s bestsellers due to the attractive interest rate of 8.49 per cent with up to 30 years to repay or up to age 70. Up to 95 per cent of the value of the property is used as collateral and moratoriums of up to six months are granted on payments for persons who are purchasing properties and those doing home improvements.