LOANS

Loans shall be granted to members subject only to availability of funds and shall be after 3 months of consecutive monthly contribution.

 

CONDITIONS GOVERNING LOANS

No loan shall be granted to:

a) Any individual other than a member of the Society;

b) Any member whose installments of shares are in arrears;

c) Any member who has not made thrift savings consecutively for 3 months.

10.3 LOANS TO MEMBERS

No loans shall be made to a member earlier than three months of becoming a member of the Society except in the case of transfer of an existing loan of a past member to his nominee or other successor in interest

MAXIMUM CREDIT LIMIT

The maximum credit limit of each applicant for a loan shall be determined as twice the total savings of the applicants as at the time of the application. Subject to periodic review.

INTEREST ON LOANS TO MEMBERS

Interest on loan to members shall be charged at a rate approved by the Lagos State bye-Laws. For now, interest rate shall be 10% payable in 3 months equall repayments.

SUPPLY OF CONSUMER GOODS

The Society shall purchase for supply to members such household equipments or consumer items as are necessary for the improvement of members' living condition. Where the member is not in a position to pay cash for these goods the value of the supplies may be treated as a loan at 10% payables in 3 months.

The Society shall also stock domestic and personal requirements including foodstuff for sale to members.

BONDS AND SURETIES

Any loan above 500,000 naira shall be supported by collateral or surety who must be a member of the society.

 No extension of the period of repayment shall be granted without the consent of the sureties

DUTIES OF A SURETY

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

Repayment of the 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 on the application form.

The surety shall report misuse of the loan to the society immediately.