Instant Funds FAQ

Instant Funds are closed-end loans that provide a lump-sum payment on which you make fixed monthly payments until your balance is paid. A personal loan may be closed-ended, or may opened-ended. Open-end loans are revolving lines of credit, meaning you can repeatedly borrow funds up to a predetermined borrowing threshold, or a credit limit. 

SESLOC Instant Funds loans are different than traditional personal loans in a number of ways. The key difference is that personal loans require a traditional loan approval process that includes determining a member’s creditworthiness based on credit score, income and other factors. Instant Funds loans do not require a credit check, but rather, the member’s credit union and deposit account relationship is evaluated to determine the loan amount and loan type they may be offered.

Typically, Instant Funds are used for unexpected emergencies. If approved, the funding is “instant” and therefore the member can use the funds in real-time to make payments or purchases as needed. Common reasons for applying for personal loans include debt consolidation, or for large sums like medical bills, home improvement or to cover wedding costs.

If you would like to discuss whether an Instant Funds loan or SESLOC Signature Loan or Signature Line of Credit is right for you, please contact us during regular business hours at (805) 543-1816, or visit any branch office.

A credit card is a revolving line of credit, meaning that you can repeatedly borrow funds up to a predetermined borrowing threshold known as a credit limit. Instant Funds are a closed-end loan, which provides a lump-sum payment on which you make fixed monthly payments. SESLOC offers two affordable credit card options, our Classic, fixed-rate Visa® credit card and a Visa Signature® Rewards credit card. If you would like to discuss whether Instant Funds or credit cards are right for you, please contact us during regular business hours at (805) 543-1816 or visit any branch office.

While SESLOC Instant Funds loans and traditional payday loans are both designed to meet short-term, immediate cash needs, there are several key differences:

• Traditional payday lenders are a for-profit business. SESLOC is not-for-profit.
• Instant Funds have more affordable interest rates than traditional payday loans (see rates). According to the California State Attorney General’s office, the average traditional payday loan interest rate is 374% APR.
• Many traditional payday lenders only offer a two-week repayment period, which is a typical length of a paycheck cycle. SESLOC Instant Funds are available in repayment terms from 3 to 36 months. The funding amount a member qualifies for indicates the maximum repayment term allowed.

SESLOC Instant Funds loans may be used for a variety of purposes, but are intended for emergencies,  unexpected expenses or life events. Examples include medical costs, sick pet care, auto or home repairs that are not covered by insurance plans, new braces or orthodontist care for your children, or for nursery supplies for a growing family. We do not recommend using Instant Funds loans to purchase everyday items like groceries or gas or for living expenses such as rent and bills. 

Yes, there is a $20.00 non-refundable application fee that is charged whether you are approved or denied the Instant Funds loan.

A Smart Payday loan has a higher annual percentage rate, repayment terms from 3 to 12 months, and funds up to $2,000. A Life Event loan has a lower percentage rate, repayment terms from 12 to 36 months, and funds up to $3,000.  A Life Event loan may be more appealing as you may borrow more funds while having a lower monthly payment, but not every member will qualify for this loan. 

SESLOC Members are eligible to apply for Instant Funds loans if they have been a member in good standing for 90 days, are 18 years old and above, and are the primary accountholder on a consumer membership. (Joint owners and Business memberships are not eligible.) A member may only have one (1) Instant Funds loan open at any time, and may not have more than three (3) Instant Fund loans opened over the preceding six months.

If you are not a member at SESLOC, check out the benefits of membership and see how to join. You are eligible to join SESLOC if you live, work or go to school in San Luis Obispo, Santa Barbara, Monterey, Santa Cruz, Tulare, Kings, Fresno, Kern and Ventura counties, or if your family member is already a member.

Qualification and funding amount is based on member’s banking history with SESLOC, which includes a review of the total deposits made in the preceding 90 days.

Yes, members may pay off the Instant Funds loan early, and with no prepayment penalties.

No, Instant Funds loans are not an eligible loan in the Level Up Member Benefits program, the holiday Skip a Pay program, or other promotional offers.

SESLOC reports Instant Funds loan payments to the credit bureaus. A history of on-time loan payments may have a positive impact on a member’s credit score.

A member may only have one (1) Instant Funds loan open at any time, and may not have more than three (3) Instant Fund loans opened over the preceding six months.

Yes, digital applications are available in branch via iPad, and we are happy to assist you in applying.

Yes, a Smart Payday loan will fund up to $2,000, and a Life Event loan will fund up to $3,000.