What factors are considered in determining the amount of the line of credit?
In determining the amount of your credit union’s line of credit, items that are considered are: your credit union’s overall creditworthiness, the amount of settlements processed through Southwest Corporate, the amount of collateral to be pledged, your credit union’s current and anticipated loan demand, and the amount of collateral pledged to other financial institutions, among others. • Is there a fee for establishing a line of credit or a term loan? If a credit union has established a Membership Capital Account (MCA) with Southwest Corporate and no notice of withdrawal has been given, there are no fees for establishing or maintaining a line of credit. If a credit union has not established an MCA with Southwest Corporate or has given notice of withdrawal, a $200.00 application fee is charged to establish or increase each line of credit and term loan and a $100.00 renewal fee is charged annually to maintain each line of credit. Interest rates on line of credit advances are also higher.N
