Less Risk
Use your savings as collateral.
What is a Savings Pledge Loan?
A savings pledge loan (also called a secured savings loan) allows you to use the money in your savings or certificate accounts as collateral for the loan.
Because your loan is secured by your own funds:
- Easier approvals
- Rates typically lower
- Great option for building or rebuilding credit
At Hughes, your savings continue to earn dividends while you repay your loan.
How does a Savings Pledge Loan Work?
Here's how it works:
- Your pledge funds from your savings or certificate account
- You borrow up to the amount you have saved
- You make fixed monthly payments
- As you repay the loan, your pledged funds gradually become available again
This structure makes savings pledge loans a smart way to access funds without losing momentum on your savings goals.
Why Choose a Savings Pledge Loan?
A savings pledge loan can help you:
- Build or improve your credit score
- Access funds without withdrawing your savings
- Secure or lower-rate loan compared to unsecured options
- Maintain your savings balance while borrowing
It's a practical solution if you're just getting started with credit.
Loan Terms & Details
- Fixed monthly payments
- Loan terms available up to 144 months
- Loan amount based on your available savings or certificate balance
- Funds become available as the loan balance is paid down
Savings Pledge Loan vs Unsecured Loan
Savings Pledge Loan:
- Secured by your savings
- Easier approval
- Lower rates
- Helps build credit
Unsecured Loans:
- No collateral required
- Based on credit score
- Higher rates
Ready to get started?
Rates
2.55% APR*
Main Share Savings Pledge Loan
Call for current rates APR*
Certificate Account Pledge Loan
Features & Benefits
- Up to 144 months (12 years)
- As the loan is paid off, secured funds become available to you
- Funds can be pledged from another person’s account
- Funds continue to earn dividends
- Submit a Debt Protection Claim
Earn more
Gain dividends while you borrow.
Flexible Terms
Up to 144 months (12 years)Disclosures
Effective Date: 04-01-2026
*APR = Annual Percentage Rate. The maximum APR, for any type of loan, shall not exceed the limit set by applicable law(s). The loan rate will be the rate in effect when the loan is completed. Rates and terms are subject to change at any time. Please contact the Credit Union for further information.