A.) APPLICATION FOR LOANS

Application for loans shall be on the standard forms of the Society which shall set-out the purpose for which the loan is desired, the security (if any) and such other data as may be required. All application for loans shall be treated on a first-come first serve basis.

B.) CONDITIONS GOVERNING LOANS

•  All application forms for loan must pass through the loan committee, emergency or other loans inclusive.
•  All loans will be treated on first come, first serve basis as regards the date of submission of loan form.
•  Approval of loans will be based on the total ordinary thrift savings of the applicant at the time of application for loan. No past-payment is acceptable.
•  Approval of loans is subject to members’ attendance at general meetings. Absence at two consecutive general meetings (without written apology) will lead to disqualification of applications.
•  Application for loan that does not exceed the total ordinary thrift savings of the applicant does not require any surety /guarantor.
•  The signature of the Treasurer and/ or the Book Keeper should be on all applications for loan.
•  A member shall be allowed to stand in as a guarantor for not more than two borrowers at any given time.
•  The total amount of security / guarantee intended by the surety / guarantor to the borrower should be so stated on the application for loan from.
•  A guarantor can only become a borrower to the tune of the sum of the remainder of his total ordinary thrift savings. However, he does not require a surety if he does not borrow more than the sum/ amount of his remaining thrift savings.
•  A borrower cannot become a guarantor until he has completed the repayment of his loan, except if he has borrowed less than his total ordinary saving in which case he still has some remaining collateral.
•  The repayment of loan shall be in equal installments not exceeding the period approved on the form except if the borrower decides to shorten the period of repayment.
•  Any problem with repayment of loan by the borrower should be in writing to the Executive Committee through the Loan Committee.
•  A window period of twelve (12)weeks should be given should be given to members that defaulted in repayment before accessing new loans.
•  Members that paid in lump sum should not be allowed to access loans until after 12 weeks.
•  Members that completed their loan repayment as at when due can access another loan immediately.
•  The credit and loan committee reserves the right to review the format of the loan application form at any time that the situation requires.
•  All application forms should be collected from and submitted to the Secretary of the Loan Committee.
•  The meeting of the Loan committee will be held as at when necessary.
•  Loans shall not be granted:
  •  To any individual other than a member of the Society.
  •  To a new member until after six months of membership to the Society.
  •  For a period exceeding the time limit as contained in the Bye-Law.
  •  If it would bring a member's total indebtedness at the time of the loan to an amount exceeding his maximum credit limit.

C.) EMERGENCY LOANS

All reputable members shall be eligible to apply for emergency loans. The emergency loan shall be equivalent to a maximum of 10% of the total savings. The emergency loan shall be payable over the next two consecutive months the loan is granted.

D.) REPAYMENT OF LOANS

•  The exact amount borrowed shall be repaid in equal installments over the approved periods, No interest shall be charged on any loans.
•  In case of default, the debt may be extended for another six (6) months if the loan committee is so convinced.

E.) MAXIMUM LOAN LIMIT

The maximum loan limit of each applicant shall be 160% of his/her total ordinary savings. The committee shall bear in mind the availability of funds, the principle of making loan available to as many members as are qualified and the securities offered.

F.) PERIOD OF LOAN REPAYMENT

The period of loan repayment shall be a maximum of six (6) consecutive months in the first instance and twelve (12) consecutive months for subsequent loans.

G.) BONDS AND SURETIES

•  Every borrower shall execute a bond and shall furnish two sureties. No extension of the period of repayment shall be granted without the consent of the sureties. Sureties must the members of the Society and must have furnished the statement required by the Bye-Law.
•  A loan applicant who borrows less than his total ordinary savings does not require any surety.

H.) DUTIES OF SURETIES

A surety must be a reputable member of the Society and shall personally guarantee:

•  Repayment of loan if the borrower defaults
•  The correctness of the particulars on which the value of the borrower's securities is based.
•  That the loan is used for the purpose stated by the borrower in his application. Misuse of the loan shall be reported by the surety to the Committee immediately.

I.)COMMITMENTS AS SURETY

A member shall be allowed to stand as surety for a maximum of two (2) borrowers at a given period provided the total amount guaranteed by a surety shall not exceed his total saving.

J.)RECALL OF LOANS

All loans shall be issued subject to the right of the Society to call for immediate repayment if:

•  Any misappropriation is proved.
•  The borrower gives an indication of withdrawal from the Society.
•  The borrower persistently defaults for a period of over three months.