CD Term Loan FAQs

A CD Term Loan, also known as a CD-Secured Loan,  is a personal loan that uses your Certificate of Deposit as collateral. Basically, you borrow money from a bank or other financial institution and pledge your CD as security. If you default on the loan, the bank can take ownership of the CD to cover the outstanding balance. The loan terms are usually based on the maturity date of the CD. 
The term of a CD Term Loan is usually based on the maturity date, or term, of the CD that is being used as collateral. If the CD has a maturity date of 13 months then the loan term will most likely be 13 months. 
Yes, you must already have a CD in your name to apply for a CD Term Loan.