General Disclosure

Each type of loan has its own advantages and disadvantages, and the best choice depends on your individual financial situation, goals, and preferences. It’s important to carefully consider the terms, interest rates, and fees associated with each type of loan before making a decision.

General Loan Types

Personal Loans: Unsecured loans for personal use, such as consolidating debt, financing a large purchase, or covering unexpected expenses.

Auto Loans: Loans for purchasing new or used vehicles, often with competitive interest rates.

Mortgages: Loans for purchasing or refinancing a home, including fixed-rate, adjustable-rate, and government-backed loans like FHA, VA, and USDA loans.

Home Equity Loans and Lines of Credit (HELOCs): Loans that use the equity in your home as collateral, often used for home improvements, debt consolidation, or major expenses.

Student Loans: Loans to help cover the cost of education, including tuition, books, and living expenses.

Credit Cards: While not a traditional loan, credit unions offer credit cards with various interest rates, rewards programs, and credit limits.

Business Loans: Loans for business purposes, including start-up costs, working capital, equipment financing, and real estate.

Payday Alternative Loans (PALs): Short-term loans offered by some credit unions as an alternative to high-cost payday loans.

Recreational Vehicle (RV) and Boat Loans: Loans specifically for purchasing recreational vehicles like campers, boats, and motorcycles.

Green Loans: Loans for energy-efficient home improvements or purchases, such as solar panels or energy-efficient appliances.

Types of Personal Loans 

Unsecured Personal Loans: These are the most common type of personal loans. They don’t require collateral, and the loan amount is based on your creditworthiness.

Secured Personal Loans: Theses loans require collateral, such as a savings account, certificate of deposit, or a valuable asset. They typically have lower interest rates than unsecured loans.

Fixed-Rate Loans: These loans have a fixed interest rate for the entire loan term, providing predictable monthly payments.

Variable-Rate Loans: The interest rate on these loans can fluctuate over time, usually based on a benchmark rate. This means your monthly payments can vary.

Debt Consolidation Loans: These loans are used to combine multiple debts into a single loan with a lower interest rate, making it easier to manage payments.

Co-Signed Loans: If you have a lower credit score, you might need a co-signer with good credit to qualify for a loan. The co-signer is responsible for the loan if you fail to make payments.

Personal Line of Credit: Similar to a credit card, a personal line of credit provides a revolving credit limit that you can draw from as needed.

Installment Loans: These loans are paid back in regular installments, typically monthly, over a set period.

Payday Loans: These are short-term, high-interest loans intended to cover expenses until your next paycheck. They are generally not recommended due to their high costs.

Types of Auto Loans

New Car Loans: These loans are specifically for purchasing a new vehicle. They typically have lower interest rates compared to used car loans.

Used Car Loans: These loans are for buying a used vehicle. Interest rates are usually higher than new car loans due to the increased risk associated with used vehicles.

Private Party Loans: If you’re buying a car from a private seller rather than a dealership, you may need a private party auto loan. These can have different terms and requirements compared to traditional auto loans.

Refinance Loans: If you already have an auto loan, you can refinance it to get a lower interest rate or more favorable terms.

Lease Buyout Loans: If you’re leasing a car and decide you want to purchase it at the end of the lease term, a lease buyout loan can help you finance the buyout amount.

Bad Credit Auto Loans: These are designed for individuals with poor credit scores. They usually come with higher interest rates and may require a larger down payment.

Preapproved Auto Loans: You can get preapproved for an auto loan before you start shopping for a car. This gives you a clear idea of your budget and can give you negotiating power at the dealership.

Secured Auto Loans: These loans use the car as collateral. If you default on the loan, the lender can repossess the vehicle.

Unsecured Auto Loans: Unlike secured loans, these do not use the car as collateral. They are less common and typically have higher interest rates.

Zero-Percent Financing: Some dealerships offer zero-percent financing as a promotional offer, meaning you pay no interest on the loan. However, these deals are usually reserved for buyers with excellent credit.

Types of Home Loans

Fixed-Rate Mortgages: These mortgages have a fixed interest rate for the entire loan term, which means your monthly payments remain the same. Common terms are 15, 20, or 30 years.

Adjustable-Rate Mortgages (ARMs): The interest rate on these mortgages can change over time based on market conditions. They usually start with a lower fixed rate for a certain period, after which the rate adjusts periodically.

FHA Loans: These are loans insured by the Federal Housing Administration and are designed for low-to-moderate-income borrowers. They require a lower minimum down payment and credit score compared to conventional loans.

VA Loans: Guaranteed by the U.S. Department of Veterans Affairs, these loans are available to eligible veterans, active-duty service members, and some surviving spouses. They often require no down payment and no private mortgage insurance (PMI).

USDA Loans: These loans are backed by the United States Department of Agriculture and are designed to help low-to-moderate-income individuals purchase homes in rural areas. They often require no down payment.

Conventional Loans: These are not insured or guaranteed by the federal government and typically require a higher credit score and down payment compared to FHA loans.

Jumbo Loans: These are for loan amounts that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. They usually require a larger down payment and higher credit score.

Interest-Only Mortgages: For a certain period, borrowers pay only the interest on the loan, after which they start paying both principal and interest. This can result in lower initial payments but higher overall costs.

Balloon Mortgages: These have low monthly payments for a fixed period, after which the remaining balance is due in a large lump sum. They can be risky if you’re unable to pay the balloon payment.

Reverse Mortgages: Available to homeowners aged 62 and older, these allow you to convert part of your home equity into cash without having to sell your home or make monthly payments.

A Home Equity Line of Credit (HELOC) is a type of loan that allows homeowners to borrow against the equity in their homes. While the basic concept of a HELOC is consistent, there can be variations in the terms and features offered by different lenders. Here are some common types or variations of HELOCs:

Traditional HELOC: This is the standard HELOC where you have a draw period (usually 5-10 years) during which you can borrow up to your credit limit, followed by a repayment period (usually 10-20 years) where you can no longer draw funds and must repay the principal and interest.

Fixed-Rate HELOC: Some lenders offer the option to convert a portion or all of your variable-rate HELOC balance to a fixed-rate loan during the draw period. This can provide stability in your payments if interest rates rise.

Interest-Only HELOC: During the draw period, you may have the option to make interest-only payments on the amount you’ve borrowed. This can result in lower monthly payments initially, but you’ll need to repay the principal amount during the repayment period.

No-Closing-Cost HELOC: Some lenders offer HELOCs with no closing costs, which can reduce the upfront expenses of opening the line of credit. However, these may come with higher interest rates or other fees.

HELOC with a Recast Feature: A recast feature allows you to reset your repayment schedule based on the current balance and remaining term after the draw period ends. This can adjust your monthly payments to a more manageable level.

HELOC with a Replenishing Line of Credit: Some HELOCs allow you to replenish your available credit as you make payments, similar to a credit card. This can provide ongoing access to funds, but it can also extend the time it takes to pay off the debt.

Types of Student Loans

Federal Student Loans: These loans are funded by the government and include Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.

Private Student Loans: Offered by banks, credit unions, and other private lenders, these loans are not backed by the government and often have different terms and conditions.

Refinanced Student Loans: These are new loans taken out to replace existing student loans, often with the goal of obtaining a lower interest rate or different repayment terms.

Income-Driven Repayment Plans: While not a separate loan, these are repayment options for federal student loans that set your monthly payment based on your income and family size.

Types of Credit Cards

Standard Credit Cards: These offer a line of credit for purchases, cash advances, and balance transfers.

Rewards Credit Cards: These cards offer rewards such as cash back, points, or miles on purchases.

Secured Credit Cards: Designed for individuals with poor or limited credit history, these cards require a security deposit that typically serves as the credit limit.

Balance Transfer Credit Cards: These cards offer low or zero interest rates on transferred balances for a promotional period, allowing for consolidation of debt.

Types of Business Loans

Term Loans: These are traditional loans with fixed repayment terms and interest rates.

SBA Loans: Backed by the Small Business Administration, these loans offer favorable terms for small businesses.

Lines of Credit: Similar to a credit card, a business line of credit provides flexible access to funds up to a certain limit.

Equipment Financing: Loans specifically for purchasing business equipment, where the equipment itself often serves as collateral.

Merchant Cash Advances: An advance on future credit card sales, typically with high fees and interest rates.

Types of Payday Alternative Loans (PALs)

These loans can have unique or special names for each Credit Union.

PALs I: Offered by federal credit unions, these loans are up to $1,000 with terms of 1 to 6 months. 

PALs II:  A newer version that allows for loans up to $2,000 with terms up to 12 months.

Types of Boat (Vessel) Loans

Yes, there are different types of boat loans, each catering to various financing needs and scenarios. Here are some common types:

Secured Boat Loans: These are the most common type of boat loans, where the boat itself serves as collateral for the loan. If you fail to make payments, the lender can repossess the boat.

Unsecured Boat Loans: Unlike secured loans, these do not require the boat as collateral, but they usually come with higher interest rates due to the increased risk to the lender.

Fixed-Rate Loans: These loans have a fixed interest rate for the entire term of the loan, providing predictable monthly payments.

Variable-Rate Loans: The interest rate on these loans can fluctuate over time, usually based on a benchmark rate. This means your monthly payments can vary.

Long-Term Loans: Boat loans can have longer terms compared to other types of loans, sometimes up to 15-20 years, to make monthly payments more affordable.

Short-Term Loans: These loans have shorter repayment periods, resulting in higher monthly payments but potentially lower overall interest costs.

Dealer Financing: Many boat dealers offer financing options directly through their dealership, often in partnership with marine lending specialists.

Personal Loans: Some buyers opt to use unsecured personal loans to finance their boat purchase, especially if the loan amount is relatively small.

Home Equity Loans or Lines of Credit: If you have equity in your home, you might consider using a home equity loan or line of credit to finance your boat purchase.

Marine Financing Specialists: There are lenders that specialize in marine financing, offering tailored loan products for boat purchases.

Types of Green Loans

Energy-Efficient Mortgages (EEMs): These are used to finance energy-efficient improvements as part of a home purchase or refinance.

Solar Loans: Specifically for financing the purchase and installation of solar panels.

Home Improvement Loans for Energy Efficiency: Unsecured personal loans used for making energy-efficient upgrades to your home.

Types of RV Loans

Secured RV Loans:  The RV itself serves as collateral for the loan. If you default on the loan, the lender can repossess the RV. These loans typically offer lower interest rates compared to unsecured loans.

Unsecured RV Loans:  These loans do not require the RV as collateral, but they usually come with higher interest rates due to the increased risk to the lender.

Fixed-Rate RV Loans:  These loans have a fixed interest rate for the entire term of the loan, providing predictable monthly payments.

Variable-Rate RV Loans:  The interest rate on these loans can fluctuate over time, usually based on a benchmark rate. This means your monthly payments can vary.

Long-Term RV Loans:  RV loans can have longer terms compared to other types of loans, sometimes up to 15-20 years, to make monthly payments more affordable.

Short-Term RV Loans:  These loans have shorter repayment periods, resulting in higher monthly payments but potentially lower overall interest costs.

Dealer Financing:  Many RV dealers offer financing options directly through their dealership, often in partnership with specialized RV lending institutions.

Personal Loans:  Some buyers opt to use unsecured personal loans to finance their RV purchase, especially if the loan amount is relatively small.

Home Equity Loans or Lines of Credit:  If you have equity in your home, you might consider using a home equity loan or line of credit to finance your RV purchase.

RV Financing Specialists:  There are lenders that specialize in RV financing, offering tailored loan products for RV purchases.

Types of Trailer Loans

Secured Trailer Loans:  The trailer itself serves as collateral for the loan. If you default on the loan, the lender can repossess the trailer. These loans typically offer lower interest rates compared to unsecured loans.

Unsecured Trailer Loans:  These loans do not require the trailer as collateral, but they usually come with higher interest rates due to the increased risk to the lender.

Fixed-Rate Trailer Loans:  These loans have a fixed interest rate for the entire term of the loan, providing predictable monthly payments.

Variable-Rate Trailer Loans:  The interest rate on these loans can fluctuate over time, usually based on a benchmark rate. This means your monthly payments can vary.

Long-Term Trailer Loans:  Trailer loans can have longer terms compared to other types of loans, sometimes up to 10-15 years, to make monthly payments more affordable.

Short-Term Trailer Loans:  These loans have shorter repayment periods, resulting in higher monthly payments but potentially lower overall interest costs.

Dealer Financing:  Many trailer dealers offer financing options directly through their dealership, often in partnership with specialized lending institutions.

Personal Loans:  Some buyers opt to use unsecured personal loans to finance their trailer purchase, especially if the loan amount is relatively small.

Home Equity Loans or Lines of Credit:  If you have equity in your home, you might consider using a home equity loan or line of credit to finance your trailer purchase.

Types of Toy Loans

“Toy” loans are loans for purchases of things such as side-by-sides (UTVs), snowmobiles, jet skis, and ATVs. These loans are often referred to as “power sports loans” or “recreational vehicle loans.” 

Secured Power Sports Loans:  The vehicle itself serves as collateral for the loan. If you default on the loan, the lender can repossess the vehicle. These loans typically offer lower interest rates compared to unsecured loans.

Unsecured Power Sports Loans:  These loans do not require the vehicle as collateral, but they usually come with higher interest rates due to the increased risk to the lender.

Fixed-Rate Loans:  These loans have a fixed interest rate for the entire term of the loan, providing predictable monthly payments.

Variable-Rate Loans:  The interest rate on these loans can fluctuate over time, usually based on a benchmark rate. This means your monthly payments can vary.

Short-Term Loans:  These loans have shorter repayment periods, resulting in higher monthly payments but potentially lower overall interest costs.

Dealer Financing:  Many dealerships that sell powersports vehicles offer financing options directly through their dealership, often in partnership with specialized lending institutions.

Personal Loans:  Some buyers opt to use unsecured personal loans to finance their powersports vehicle purchase, especially if the loan amount is relatively small.

Home Equity Loans or Lines of Credit:  If you have equity in your home, you might consider using a home equity loan or line of credit to finance your powersports vehicle purchase.

Types of Motorcycle Loans:

Secured Motorcycle Loans:  The motorcycle itself serves as collateral for the loan. If you default on the loan, the lender can repossess the motorcycle. These loans typically offer lower interest rates compared to unsecured loans.

Unsecured Motorcycle Loans:  These loans do not require the motorcycle as collateral, but they usually come with higher interest rates due to the increased risk to the lender.

Fixed-Rate Loans:  These loans have a fixed interest rate for the entire term of the loan, providing predictable monthly payments.

Variable-Rate Loans:  The interest rate on these loans can fluctuate over time, usually based on a benchmark rate. This means your monthly payments can vary.

Short-Term Loans:  These loans have shorter repayment periods, resulting in higher monthly payments but potentially lower overall interest costs.

Long-Term Loans:  Motorcycle loans can have longer terms, sometimes up to 5-7 years, to make monthly payments more affordable.

Dealer Financing:  Many motorcycle dealerships offer financing options directly through their dealership, often in partnership with specialized lending institutions.

Manufacturer Financing:  Some motorcycle manufacturers offer their own financing programs, which can include special promotions or incentives.

Personal Loans:  Some buyers opt to use unsecured personal loans to finance their motorcycle purchase, especially if the loan amount is relatively small.

Home Equity Loans or Lines of Credit:  If you have equity in your home, you might consider using a home equity loan or line of credit to finance your motorcycle purchase.

Types of Construction Loans

Construction-Only Loans:  These loans cover the cost of the construction project and must be paid off or refinanced into a permanent mortgage once the construction is completed. They typically have short terms, usually a year or less.

Construction-to-Permanent Loans (or One-Time Close Loans):  These loans convert to a traditional mortgage once the construction is completed. The advantage is that you only have one application and one closing process, which can save time and money.

Owner-Builder Loans:  These are for individuals who plan to act as their own general contractor for the construction project. These loans can be more difficult to obtain due to the increased risk to the lender.

Renovation Loans:  These loans are for purchasing a home that needs significant repairs or renovations. The cost of the renovations is included in the loan amount. Examples include the FHA 203(k) loan and the Fannie Mae Home Style Renovation Mortgage.

End Loans:  These are traditional mortgages that you qualify for at the end of the construction process. They are used to pay off the construction loan and become the long-term financing for the home.

Bridge Loans:  These are short-term loans that provide financing during the gap between the end of construction and the securing of permanent financing. They are typically used when the borrower needs to cover the cost of the new construction while waiting for their current home to sell.

Land Loans:  While not strictly construction loans, land loans are often used to finance the purchase of the land on which the construction will take place. They can be rolled into a construction loan once the building process begins.

General Investment Products

Disclosure: Note that while credit unions are known for their deposit accounts and loan products, their investment offerings might not be as extensive as those of larger banks or investment firms. Members interested in investing through their credit union should inquire about the specific products and services available, as well as any associated fees and risks.

Share Certificates (Certificates of Deposit – CDs):  These are time deposits with a fixed interest rate and term, offering a safe way to earn interest on your savings.

Money Market Accounts:  These accounts typically offer higher interest rates than regular savings accounts, with more flexibility to access funds than CDs.

Individual Retirement Accounts (IRAs):  Credit unions offer both Traditional and Roth IRAs, which are tax-advantaged retirement savings accounts.

Mutual Funds:  Some larger credit unions may offer access to mutual funds through their investment services, allowing members to invest in a diversified portfolio of stocks, bonds, or other securities.

Brokerage Services:  Some credit unions provide brokerage services where members can buy and sell stocks, bonds, and other securities.

Annuities:  Credit unions may offer fixed or variable annuities as a way to save for retirement or generate a steady income stream in retirement.

529 College Savings Plans:  These are tax-advantaged savings plans designed to encourage saving for future education costs.

Share Certificates (Certificates of Deposit – CDs): 

   –  Regular CDs:  Standard fixed-term, fixed-rate CDs.

   –  Bump-Up CDs:  Allow you to increase the interest rate once during the term if rates rise.

   –  Step-Up CDs:  Automatically increase the interest rate at predetermined intervals during the term.

   –  Jumbo CDs:  Require a larger minimum deposit and typically offer higher interest rates.

Money Market Accounts: 

   –  Regular Money Market Accounts:  Offer higher interest rates with limited check-writing privileges.

   –  High-Yield Money Market Accounts:  Offer even higher interest rates, often with higher minimum balance requirements.

Individual Retirement Accounts (IRAs): 

   –  Traditional IRA:  Contributions may be tax-deductible, with taxes deferred until withdrawal.

   –  Roth IRA:  Contributions are made with after-tax dollars, with tax-free withdrawals in retirement.

   –  SEP IRA:  Simplified Employee Pension plan for self-employed individuals and small business owners.

   –  IRA CDs:  CDs held within an IRA, offering fixed returns with the tax advantages of an IRA.

Mutual Funds:  (if offered)

   –  Equity Funds:  Invest primarily in stocks.

   –  Bond Funds:  Invest primarily in bonds.

   –  Balanced Funds:  Invest in a mix of stocks and bonds.

   –  Index Funds:  Track the performance of a specific market index.

   –  Money Market Funds:  Invest in short-term debt securities.

Brokerage Services:  (if offered)

   –  Stocks:  Buy and sell shares of publicly traded companies.

   –  Bonds:  Invest in corporate, municipal, or government bonds.

   –  Exchange-Traded Funds (ETFs):  Investment funds traded on stock exchanges, similar to stocks.

   –  Options:  Contracts that give the right, but not the obligation, to buy or sell an asset at a set price.

Annuities: 

   –  Fixed Annuities:  Provide guaranteed fixed payments over a specified period.

   –  Variable Annuities:  Payments depend on the performance of underlying investment options.

   –  Immediate Annuities:  Start paying out income shortly after the initial investment.

529 College Savings Plans: 

   –  Prepaid Tuition Plans:  Allow you to prepay for future tuition at today’s rates.

   –  Education Savings Plans:  Invest contributions in mutual funds or similar investments.

Financial Planning and Investment Advice: 

   –  Retirement Planning:  Assistance with planning for retirement savings and income.

   –  Education Planning:  Guidance on saving for education expenses.

   –  Estate Planning:  Advice on estate planning and wealth transfer strategies.

   –  Tax Planning:  Assistance with tax-efficient investing and tax planning.

Types of Insurance Services

Disclosure: It’s important to note that the availability of these insurance products can vary depending on the credit union and the partnerships they have with insurance providers. Members should inquire about the specific insurance options available and the terms and conditions of each policy.

Auto Insurance:  Coverage for cars, trucks, and other vehicles, including liability, collision, and comprehensive coverage.

Homeowners Insurance:  Protects your home and personal property against damage or loss due to events like fire, theft, or natural disasters.

Renters Insurance:  Provides coverage for personal property and liability for individuals renting an apartment or home.

Life Insurance:  Offers financial protection for your beneficiaries in the event of your death. Types of life insurance offered may include term life, whole life, and universal life insurance.

Disability Insurance:  Provides income replacement if you are unable to work due to a disability.

Health Insurance:  Some credit unions may offer health insurance options, including individual and group health plans.

Long-Term Care Insurance:  Covers the costs of long-term care services, such as in-home care, assisted living, or nursing home care.

Accidental Death and Dismemberment (AD&D) Insurance:  Provides coverage in case of death or dismemberment due to an accident.

Credit Insurance:  Offers protection on loans and credit lines, covering payments in case of death, disability, or involuntary unemployment.

Travel Insurance:  Provides coverage for trip cancellations, medical emergencies, and other travel-related risks.

Pet Insurance:  Covers veterinary expenses for your pets in case of illness or injury.

Identity Theft Protection:  Offers monitoring and recovery services to protect against identity theft and fraud.

Types of Instant Payment Services 

Disclosure: It’s important to note that the availability and speed of these instant payment services can vary depending on the credit union and the specific service being used. Members should check with their credit union for details on the instant payment options available and any associated fees or limits.

Person-to-Person (P2P) Payments:  Services like Zelle, Venmo, and PayPal allow members to send and receive money instantly to and from friends, family, or anyone with a mobile phone number or email address.

Mobile Banking Apps:  Many credit unions have their own mobile banking apps that offer instant payment and transfer capabilities, allowing members to manage their accounts and send money on the go.

Online Bill Pay:  This service enables members to pay bills instantly online, directly from their checking or savings account, without the need for writing and mailing checks.

Wire Transfers:  Credit unions offer both domestic and international wire transfer services for instant transfer of funds between accounts or to other financial institutions.

ACH (Automated Clearing House) Transfers:  While not always instant, some credit unions offer same-day or next-day ACH transfers for quick movement of funds between accounts.

Contactless Payments:  Credit unions provide debit and credit cards with contactless payment capabilities, allowing members to make instant payments at point-of-sale terminals by tapping their card or using mobile wallet apps like Apple Pay, Google Pay, or Samsung Pay.

Real-Time Payments (RTP):  Some credit unions are adopting the RTP network, which enables instant, 24/7 clearing and settlement of payments.

Types of Crypto Products

Crypto Savings Accounts: Some credit unions may offer savings accounts that allow members to earn interest on their cryptocurrency holdings.

Crypto-Backed Loans: Credit unions might provide loans where members can use their cryptocurrency holdings as collateral.

Crypto Trading Platforms: A few credit unions have partnered with third-party platforms to allow members to buy, sell, and hold cryptocurrencies.

Crypto Payment Services: Some credit unions are exploring services that enable members to make payments or send money using cryptocurrencies.

Crypto Education and Advisory: Credit unions may offer educational resources and advisory services to help members understand the risks and opportunities associated with cryptocurrencies.

General Glossary of Terms

Assets: The total value of everything owned by the credit union, including cash, loans, investments, and property.

Liabilities: The total amount owed by the credit union, including deposits, borrowings, and other obligations.

Net Worth: The difference between total assets and total liabilities, representing the credit union’s equity or capital.

Loans to Members: The total amount of loans outstanding that have been issued to members of the credit union.

Allowance for Loan and Lease Losses (ALLL): A reserve set aside to cover potential losses on loans and leases.

Delinquent Loans: Loans that are past due on payments by a certain number of days (e.g., 60 days or more).

Net Interest Margin: The difference between the interest income generated by the credit union and the amount of interest paid out to lenders, relative to the amount of interest-earning assets.

Return on Assets (ROA): A measure of profitability that calculates how effectively a credit union uses its assets to generate net income.

Membership: The total number of individuals who are members of the credit union.

Shares: The deposits made by members into their accounts, which are considered “shares” in the credit union.

Capital Ratio (Net Worth Ratio): This ratio measures a credit union’s net worth (capital) as a percentage of its total assets. It’s an indicator of financial strength and resilience. A higher ratio suggests a stronger financial position. The NCUA requires a minimum net worth ratio of 7% for credit unions to be considered well-capitalized.

Loan-to-Share Ratio: This ratio compares the total amount of loans outstanding to the total amount of shares (deposits) held by members. It indicates how much of the credit union’s deposits are being used to fund loans. A higher ratio suggests active lending, but it should be balanced to ensure liquidity.

Delinquency Ratio: This ratio measures the percentage of loans that are delinquent (overdue) in relation to the total loan portfolio. A lower delinquency ratio indicates better loan performance and lower credit risk.

Charge-Off Ratio: This ratio shows the percentage of loans that have been written off as losses compared to the total loan portfolio. A lower charge-off ratio indicates better asset quality and lower risk of loan losses.

Return on Assets (ROA): As mentioned earlier, ROA measures the credit union’s profitability relative to its total assets. It shows how efficiently the credit union is generating income from its assets.

Return on Equity (ROE): This ratio measures the credit union’s profitability relative to its net worth (equity). It indicates how effectively the credit union is using its capital to generate profits.

Operating Expense Ratio: This ratio compares the credit union’s operating expenses to its total income. A lower ratio indicates more efficient operations and cost management.

Liquidity Ratio: This ratio measures the credit union’s ability to meet short-term obligations and unexpected withdrawals. It compares liquid assets (such as cash and short-term investments) to total shares and borrowings.

Membership Growth: While not a financial ratio, the growth rate of membership can be an indicator of the credit union’s appeal and market reach.

Loan Growth: Similar to membership growth, the growth rate of the loan portfolio can indicate the credit union’s lending activity and market demand for its loan products.