How long do I have to be a member before I become eligible for a loan?

Once you have saved a minimum of $1,000 you become eligible for a loan.

What is the maximum amount that I can borrow?

Members with 6 months and over membership may borrow up to ten times the amount saved
in shares for regular loans to the loan limit, which is 10% of institutional capital.

For membership under 6 months the loan to share ratio is five times the amount saved in
shares.

There are some Special Loans for which the share contribution may vary.

Do I need to have collateral (security) for a loan?

Yes, this is necessary. If it is a loan within Shares, the shares will secure the loan. However,
if the loan is in excess of shares, additional security will be necessary.

What are the standard documents required for loans in excess of shares?

Proof of ownership of collateral

Proof of income

TRN

Valid Identification

Other documents based on the type of loan

What is the interest rate on loans?

The interest rate may vary between 16% to 35% dependent on:

Your period of membership

Your collateral status

Your share contribution (the greater the share contribution, the lower the interest rate)

The purpose of the loan

How long will I get to repay a loan?

This may be any period up to 10 years, for regular loans, based on the type of collateral
offered. The maximum repayment period for our special Mortgage Loan is however 20 years.

Do I have to repay one loan before taking another?

No, it is possible for a member to have more than one loan e.g., a motor vehicle loan and an education loan. The sum of both loans must not however, exceed the loan limit, which is 10%
of institutional capital

Is it a fact that a portion of my loan re-payment goes back to savings?

Yes, 5% of your monthly repayment goes to your savings. Monthly repayment is therefore
made up of Principal, interest and savings.

How do I apply for a loan?

By filling out the prescribed form provided by the Credit Union or on our website.

When are loan interviews required?

Interviews are required for all loans above shares.

Who is a Co-maker?

A Co-maker:

Is a member who has "free" shares and is willing to pledge it in part or whole as security for  another members loan is also liable for the total loan

Can only access a loan on the unpledged portion of his/her shares

Can withdraw from shares, any amount in excess of that pledged/held against the loan.

Who is a Surety?

A member in good financial standing with the Credit union who is willing to accept responsibility
of the total loan of another member.

A surety may only withdraw, where the total loan of the account he/she signed for is less than his/her shares

Each member can act as surety for a maximum of two loans

A maximum of two sureties can be used in securing one loan, according to the surety schedule.