Lines of Credit

Regular Line of Credit

  • Up to a maximum of $250,000
  • No monthly service charge
  • Interest calculated on outstanding balance only
  • Automatic minimum payments due on the first day of the month
  • Transactions appear on monthly statements
  • Payments and inquiries available through U-Touch or UCU On-Line Banking

Student Line of Credit

  • Student Line of Credit available to cover your living or education costs. (While the student is enrolled full-time in the program, interest only payments can be made monthly.

UCU will offer a competitive student loan program to allow students access to much needed funding while enrolled in an accredited Canadian university, college or American accredited schools granting post-secondary degrees and for up to twelve (12) months after graduation or residency (or up to six months if student withdraws from program early).  For all other international schools approval of the RCM, CM, CEO, COO or CFO is required. 

Credit limits will be established based on the type of program the student is enrolled in, and the type of degree/diploma they will graduate with.  Refer to TABLE 1 below for detailed program, credit limit maximum and interest rate information by area of study. 

The maximum credit limit will be evenly made available equally for the duration of study (for example, an $80K credit line for a law degree will be made available in $20K increments in each of the four (4) years of study.)


Minimum Interest Rates:

  1. a)            Prime (Medical and Dentistry)
  2. b)            Prime + 1% (All other programs)


  1. a)            Repayment while in school

While the student is enrolled full-time in their program of study, interest only payments must be paid monthly.  Periodic lump sum payments will be allowed if students receive funds from other sources (parents, etc.,) to keep their cost of borrowing down. 

  1. b)            Twelve (12) Month Grace Period

Students will receive a 12 month grace period post-graduation where they can continue to make interest only payments.  This will give them time to secure suitable employment and get established.  This grace period is optional at the student’s request and blended repayment may commence earlier if the student so wishes.  The grace period may also be used for the purposes of medical residency’s, legal articling, or further post-secondary studies.   

  1. c)            Extension of Grace Period

Requests for an extension of the initial 12 month grace period may be requested by the student in writing for consideration by UCU.  Approval of the extension shall be at the discretion of the Credit Manager or Retail Credit Manager (or the CEO, COO or CFO in their absence).   Limits for the extension will be based on program of study, and are limited to:

  1. 1 Year –   Law (to accommodate articling upon confirmation of assignment with a law firm)
  2. 2 Years – Dentistry (to accommodate specialized training if enrolled)
  3. 7 Years – Medicine (to accommodate residency upon confirmation of acceptance)
  1. c)            Post-Education Repayment:

Once a student graduates and/or the 12 month grace period has passed, blended repayment of the credit facility must commence.  The interest rate will remain at the same interest granted under the original line of credit, and the debt may remain as a line of credit or be converted to a blended payment personal loan.  If the debt remains as a line of credit, blended repayment of a minimum of 3% of the outstanding balance will be required.  Fixed payment option of principal and interest may also be available with a maximum amortization of 10 years.  Approval of such requests will be handled on case by case basis.

Lenders will meet with students who have withdrawn for the program for any reason or have graduation to review repayment terms. The appropriate revised line of credit agreement is to be prepared and executed. 

Repayment terms to be communicated to the student in writing (either by registered mail or email) if the lender is unable to meet with the student in person.

Application Process:

Along with our normal personal loan application process, students will be required to provide confirmation of their acceptance and enrolment in an accredited college or university.  As well, students must provide satisfactory proof of enrollment annually as each incremental limit increase is requested.  All schools have a standardized Proof of Enrolment or Verification of Enrolment form. 

If a student is unable to produce an acceptable confirmation of enrolment documentation, they will be deemed to have withdrawn from their educational program and the post education repayment program will commence. 

Home Equity Line of Credit

  • Use it for any purchase such as an investment, real estate, car, etc.
  • Arranged as a first or second mortgage and allows you to borrow against the equity in your home
  • Integral part of chequing account; activated by drawing on the chequing account
  • No monthly service charges
  • Automatic blended principal and interest payments due on the first day of the month
  • Automatic repayments can be as low as the monthly interest only on the first of the month and if you don't use it, you don't pay
  • Monthly Premium Life, Disability and Critical Illness Insurance is available
  • Payments and inquiries available through U-Touch or UCU On-Line Banking

Overdraft Protection

  • Give yourself peace of mind when writing cheques with UCU`s Overdraft Protection
  • Available up to a pre-authorized wait, your cheques will automatically be covered with no handling or service charges
  • Interest is calculated and charged monthly, only on balances used, and is payable on the 1st of each month along with a payment of 5% of the outstanding balance

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