Installment and Auto Loans

To finance a car, truck, or boat, your child’s education, or any other important purchase. Exchange State Bank will work with you and put the means within your budget.

Personal Credit Line (Overdraft Protection)

This service may be applied for by anyone with a checking account with Exchange State Bank. All applications will be subject to credit approval.

How Personal Credit Line (PCL) works

Once the application is approved, a line of credit is established and tied to your checking account. If items such as checks or electronic debits are presented for payment on your account that would overdraw the account, funds from the PCL are transferred automatically in increments of $100 up to your line of credit limit to cover the debits.

Finance charges begin to accrue immediately when we make a loan to you. To figure the finance charge for a billing cycle, we apply a daily periodic rate of finance charge to the "average daily balance" of your loan account for the billing cycle. We then multiply that figure by the number of days in the billing cycle. The average daily balance is computed as follows: First, we take your loan account balance at the beginning of the day and subtract any unpaid finance charges and credit insurance premiums (if any) that are due. Next, we subtract the portion of any payments or credits received that day which apply to the repayment of your loans. (A portion of each payment you make is applied to finance charges and credit insurance premiums, if any.) Then we add any new loans made that day. This gives us the daily balance. Then we add up all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle. This gives us the "average daily balance". The periodic rate of FINANCE CHARGE is .04931% which is equal to an ANNUAL PERCENTAGE RATE of 18%. The annual percentage rate includes interest and not other costs.

How to repay your loan

On or before each payment date, you agree to make a minimum payment to reduce your debt. The minimum payment amount is 5% of your loan account balance on the last day of the billing cycle, or $25, whichever is greater. If your loan account balance on a payment date is less than the minimum payment amount, you must pay only the loan account balance. If you fail to make a payment, we may, but are not required to, advance money to you to make the payment. You can pay off all or part of what you owe at any time. However, so long as you owe any amount you must continue to make your periodic minimum payment. The amounts you pay will first reduce the amount owed for credit insurance (if any), then will reduce the finance charges, and finally will reduce the amount of unpaid loans.

Automatic withdrawal

A payment will automatically be withdrawn from your checking account on each payment date. If your checking account does not have enough money in it to make the minimum payment, we may, but are not required to, lend you money to make the payment. If your loan account balance is less than the minimum payment amount, we will withdraw only the amount necessary to reduce your loan account balance to zero.

Applications are available upon request.

For more information, e-mail us at: loans@lanarkbank.com

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