Loan Payment User Guide

Ways to Make Loan Payments 

SEFCU offers many safe and easy ways to quickly make a loan payment including:

  • Online transfers from a SEFCU account or an account at another financial institution. Check out this guide with helpful tips and FAQs.
  • Secure Web Chat with a SEFCU representative. Simply log into your account, click on chat, and let the representative know what loan you would like to pay and which SEFCU account you would like to pay it from.
  • By phone with the Member Solutions Center. Call us at 800-727-3328 to speak to a representative who will transfer funds from one of your SEFCU accounts to complete your loan payment.
  • Visit a branch location. Please note that branch locations may have limited access due to COVID-19.

Payment Options

If you have chosen to initiate loan payments manually, you will not receive a bill. You can log into your account via online banking or the Mobile app to verify your next due date. 

To protect your credit history and save time, consider setting up automatic payments for your loan. Automatic payments can be set up to occur weekly, biweekly, semi-monthly, or monthly to conveniently fit into your budget. Contact SEFCU to find out what your new payment would be if you change your current frequency to a more convenient schedule. 

How Payments Are Applied 

Regular/Minimum Loan Payments
Loan payments are comprised of different components, all of which make up the total amount due at each interval. 

Components of loan payments include:

  • Principal
  • Interest
  • Fees

When a loan payment is made, the interest that has accrued since the last payment is satisfied first, and the remainder is applied to the principal balance. 
If you have any fees such as a late payment fee, the fee will be satisfied first, then the interest for the payment period will be satisfied, and the remainder is applied to the principal balance.  

Additional payments 
You may make additional payments to your loan to reduce interest and pay off your loan more quickly without any penalty. Please note the two scenarios below for how additional payments are credited to the loan. 

Paying more than the minimum
Automatic payments set for an amount higher than the minimum payment will satisfy the interest accrued since the last payment and credit the remaining payment to the principal balance. Your required payment amount will not change, but more money will be paid toward principal.  

Making an extra payment 
To make an extra payment, please make sure your current payment is satisfied. An extra payment can either be applied toward principal (also known as a principal-only payment) or can advance your next required payment by one interval.  

To make a principal-only payment, use one of the various payment methods to initiate the transaction or add your extra payment to the next required minimum payment. All excess funds will automatically be applied to principal.

One time or manual “extra” payments to the loan may impact the loan in several ways depending on when the extra payment is made. 

  • If the extra payment is made at the same time as the payment, the interest accrued since the last payment will be satisfied, and the remaining payment will be credited to the principal balance.
  • If the extra payment is made shortly after the regular payment (timing will depend on frequency of loan payments – weekly, biweekly, monthly, etc.) the payment will be credited to the principal balance.
  • If the payment is made shortly before the regular payment (timing will depend on frequency of loan payments – weekly, biweekly, monthly, etc.) the interest accrued since the last payment will be satisfied, and the remaining payment will be credited to the principal balance. The next regular payment will satisfy the minimal interest accrued since the additional payment and the remainder will be credited to the principal balance. 

You may elect to pay loans ahead no more than 30 days from the current payment due. Additional payments will be credited to the principal balance of the loan as it provides the most benefit and savings for you. For situations like extended travel, the recommended process is to deposit advance payments into your savings account and set up automatic payments to occur during your absence. 

Loan Payment Calculations

Loan payments can be either for a fixed term and amount or be assessed depending on the balance and activity of a loan. 

  • Variable-rate loans and lines of credit will have varying payment amounts.
  • Fixed-rate loans will have a fixed payment amount.

If there is a balance on your loan or a line of credit, a payment will be due for the upcoming payment cycle. While payment frequencies can be different (weekly, bi-weekly, monthly, etc.), each loan will generate a payment amount ahead of the due date to facilitate payment. The following illustrates when payments are generated based on payment frequency:

  • Weekly - five days in advance of payment
  • Bi-weekly - 10 days in advance of payment
  • Monthly - 15 days in advance of payment

Loan Payoffs

Loans with automatic payments 
Most loans with automatic payments do not need any special action taken at the end of the loan term. The final payment will transfer for the appropriate amount and the automatic payment will stop. In a few situations, action may need to be taken depending on the member’s preference.

  • Funds pulled from another financial institution for payment and placed in a savings or checking account at SEFCU will need to be cancelled, unless you would like to continue to have the money accrue in your account for future use. Please contact SEFCU for the appropriate form to cancel this electronic transfer. You will need to provide your account number and routing number for the other financial institution to complete the request form.
  • Loan payments made by direct deposit from an employer need to be cancelled only if you do not want the funds to continue to deposit into a SEFCU savings or checking account. Funds deposited through direct deposit into a savings or checking account to cover an automatic loan payment will simply remain in the savings or checking account available for member use. 

Loans that are paid manually
The final payment for loans that are paid manually will need to be calculated based on the day the final payment is paid. The balance reflected online does not include the daily interest which must be paid to satisfy the loan completely. A payoff amount may be requested for a specific date once the loan reaches the final payment period. 

Lien Releases
If a loan was secured against a vehicle, the lien release will be generated and sent to the member automatically. The lien release can be expected to arrive by mail approximately 10 business days after the loan payoff date.

*Home equity loans that are paid in full or refinanced within three years of the date of closing are subject to a recapture fee. Please refer to your home equity paperwork to see if this fee applies to your loan.