Get most out of life.
This is a loan given to members for personal use to meet financial obligations. The unique feature of this loan product is the flexibility of borrowing up to 200% of own compulsory savings with the society and the loan is usually guaranteed by the member’s savings and eligible guarantors’ savings. Proceeds of this loan may be used for car purchase, land acquisition, house buying, school fees, rental bills, etc
Members should be aware that the number of months of compulsory savings will also be used to determine the eligible loan amount. Should a member miss a month or months of savings, the eligible loan amount is impacted.
Business or Trader Loan
A business or trader loan is a loan given to members who are business owners or trader for business activities. The loans are available for 3 months, 6 months, 12 months tenure.
This is an emergency loan to cater for exigencies. The tenure for this loan type is 3 months and the maximum loan amount is 30% of member’s compulsory savings balance. Repayment is a bullet-repayment with a flat rate of 15% per month.
Mortgage loans are currently for properties under the management and sales portfolio of society. A contributor is eligible to access a maximum loan amount of =N=15 million repayable over a maximum period of 20 years. The loan tenor which is a maximum of 20 years is subject to member’s age not exceeding 60 years. This means that a member who is already 50 years cannot access more than 10 years of mortgage loan tenor. Members will be required to make equity contributions of 30%, 20% or 10% as the case may be. The loan amount is determined by the applicant’s affordability. This entails his/her income level that will enable repayment of the loan.
Documents required to process a loan include:
- Completed application form.
- Three years tax clearance certificate.
- Copy of pay slips for the previous three months (employees only).
- Equity contribution or personal stake of 30%, 20% or 10%
depending on the loan amount applied for.