What are Stock-Secured Loans?
How much can be borrowed?
Are there positive tax implications?
Is there a rate discount available?
What are Stock-Secured Loans?
If you've built up a valuable stock portfolio, selling those stocks to finance something such as a new car, your daughter's wedding, or your child's college education could result in expensive capital-gains taxes. A wiser option may be to take out a stock-secured loan from KeyPoint Credit Union.
KeyPoint Credit Union finances up to 50% of the value of your stock listed on the American or New York Stock Exchanges. Loan terms up to 60 months (5 years) are available. The stock must be in certificate form. The certificates will be held by KeyPoint Credit Union during the term of your loan.
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How much can be borrowed?
No limit – based on balance in secured account, however there are limitations on stock secured loans.
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Are there positive tax implications? For example, is the interest the member pays above the rate his money earns a tax deduction?
Generally there is no tax benefit on interest paid on a loan. You would need to consult with CPA for tax implications. Tax benefit would be possible capital gains taxes, if stock is sold.
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Is there a rate discount available?
Rate discounts are not available on this product.
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