Personal Loans FAQs
Is there a discount for having monthly payments made automatically?
Yes, on most accounts, you will receive a rate discount of .25% when you choose to have your loan or line of credit payments automatically deducted from your First Guaranty account.
Are there any pre-payment penalties on personal loans closed at a banking office?
No, if you pay off a loan before the original term, you will not incur a penalty charge. You only pay interest for the time you had the loan.
Is debt protection available on my Loan?
Yes, debt protection is a bank product and may be available for your loan, depending on the amount borrowed and term of the loan. It includes credit life and/or accident & health benefits and must be purchased at the time of closing.
Are automatic payments available on my Loan?
Yes, automatic payments are available. Just ask to have your monthly payments automatically deducted from your checking or savings account.
How long will it take to get a decision?
If you are applying during normal business hours, you should usually receive a decision within twenty-four (24) hours.
What is a home equity line of credit?
Also known as a HELOC, a home equity line of credit is a type of revolving credit for which your home is pledged as collateral. The interest rate and payments are variable. The term is defined by a draw period and a repayment period. The payment each month is based upon the outstanding balance owed. As payments are applied to principal, your available credit increases accordingly.
You can estimate your home's equity by adding the balance of all the debts secured by your home, then subtracting the total from your home's value.
What are the primary advantages of a home equity line of credit?
The two major advantages of borrowing with a home equity line of credit are lower interest rates and potential tax savings:
The interest rate you pay on the average home equity line of credit is generally lower than the interest rate you will pay on the average credit card or other type of non-secured debt.
For home equity lines of credit, you can generally deduct the interest you pay. The interest you pay on credit cards and other types of personal loans is generally not tax-deductible. Consult your tax advisor about the deductibility of interest.
How can a home equity line of credit be used?
You can use a home equity line of credit for almost anything. Common uses include debt consolidation (paying off high-interest credit card debt), home improvements, purchasing or refinancing a home, paying for education expenses, college tuition and buying luxury items.
Do I have to live in the residence I'm using as collateral?
Yes, First Guaranty Banks Credit Policy requires the collateral property to be a primary residence.
How much will my payment be and when is it due?
Your minimum monthly payment will be 1.50% of the outstanding balance. During repayment, your monthly payment is a combination of principal and interest. As an alternative, you may qualify for an interest-only payment during this time.
As a convenience, monthly payments may be automatically deducted from your First Guaranty Bank checking account. Ask your Loan Officer to set up automatic payments.
