Credit Management

Requirement for Qualification of Loans

i. A member must have completed at least six (6) months of active membership.
ii. A member who withdraws from the Society and rejoins later will be treated as a new member for the purpose of this credit policy.

Loan Application

i. All applications for loan shall be made on prescribed forms by the Society.
ii. False information on application form shall lead to automatic disqualification.

Loan Appraisal

All loans shall be appraised as per the terms and conditions of the loan type.

Loan Approval/Rejection

i. All loans shall be approved by the Credit Committee.
ii. No member of the loan approving committee shall be present when his/her loan is being processed.
iii. Members will be informed of the decision reached on their loan applications.
iv. If a member is not satisfied with the decision passed by the Credit Committee, such a member will be free to submit a written appeal to the Board within fourteen (14) days from the date a decision was passed by the Credit Committee.

Loan Repayment

i. Deductions for loan repayment shall commence not later than the month following that in which the loan was issued to the member.
ii. A member may repay his/her loan and interest in whole or in part prior to its maturity.
iii. A member’s savings pledged as security for another member’s loan shall not be surrendered to offset his/her outstanding loan, unless the former can provide alternative security for the latter’s loan.
iv. Loan repayment period may not be extended beyond the period the member specified in the loan application form.
v. Upon cessation of employment, a member is required to pay all existing loans with the Society.

Loan Security

i. All loans should be fully one hundred percent (100%) secured.
ii. There will be no maximum number of guarantors, but the minimum shall be determined by the terms and conditions of the loan.
iii. All guarantors must be members of the Society.
iv. The obligation of the previous guarantors shall cease upon completion of the loan or change of guarantors but subject to new guarantors being accepted by the Society.


Reports shall be generated at all points of the loan application process.

Default Management

i. The guarantors shall be notified of the defaulted loan within 14 days after the default occurs.
ii. A loan shall be considered to be in default if installments are missed in whole or part and remain unpaid for a period of thirty days (30) days.
iii. Amount in default (unpaid monthly installment) will attract penalty at a rate of two percent (2%) per month.

Loan Recovery

i. The management shall make efforts to collect defaulting loans from members.
ii. Where the loan and interest balance is equal or less than the member’s savings, it shall be recovered from the member’s savings.
iii. Where a member defaults and the Society is unable to recover the loan from his savings, the loan shall be recovered from the guarantors.
iv. No member shall be allowed to withdraw from the society if in default or has guaranteed a loan in default until the loan is cleared.
v. Communication to loan defaulters shall be made through written notices.
vi. Services of debt collectors shall be engaged ninety (90) days after the guarantor fails to honor the obligation.
vii. When a member dies while repaying a loan that is not in default, the loan balance and interest shall be paid by the insurance company upon notification and application.
viii. Where a member dies and has a loan that is in default, the loan shall be recovered from member’s collateral and guarantors if inadequate.