LOANS
 

The first object of the credit union is to:

 

"encourage thrift among its members by
the accumulation of their savings".

 

But thrift means much more than saving for the future. The way we organise our finances on a daily basis can affect our whole life.

The credit union has proved to be most effective in providing a new framework for members 'financial affairs' by:· Encouraging regular savings.

 

· Helping to keep debt under control.


· Offering money management advice.

 

· Providing death benefits and insurance.


· Freeing them from exorbitant interest charges

· Providing a source of low cost credit.
WHY BORROW FROM THE CREDIT UNION?

"Members own their credit union so when you borrow, you are not just another customer increasing someone else's profits. The interest you pay on your loan will help to make your credit union grow. Loans are only available to members, to provide help when a need exists and not to make a profit at the expense of the borrower."

APPLYING FOR A LOAN

Loans can only be granted to members, and may be granted for any provident or productive purpose if -

1. You are a member in good standing.
2. You show that you have a need and
3. Can demonstrate your ability and willingness to repay.

When applying for a loan, you will be asked to complete a loan application form. In order to ensure that the repayments are tailored to your particular circumstances, a loan officer who will ask for details of income and expenditure will interview you. All loan applications are considered in complete confidence.

It is the policy of the credit union to satisfy the needs of as many members as possible, so if funds were scarce at any time, small loans would be given priority over large ones.

To protect the savings of members, the savings and loan repayment record of the applicant is taken into account as well as their need and ability to repay When the loan has been approved the member is asked to sign a Loan Agreement setting out the terms of repayment and any other requirements.

As with all other payments made by the Credit Union the loan is paid by cheque. (Where possible the cashier will try to cash the cheque) Members whose circumstances change and find difficulty in maintaining their repayments should contact the Credit Union immediately. The loan repayments can then be adjusted to reflect the members' new situation.
 
WITHDRAWING YOUR SAVINGS- (SHARES)

Your savings at the credit union may be withdrawn at any time I unless they have been pledged as security for a loan, but members are encouraged to consider their shares in the credit union as life savings. Members will usually be advised to retain their savings unless a withdrawal becomes absolutely necessary.

Your shares in the credit union: -

Establish the amount you may borrow from time to time.
Create the general pool of savings from which all members may
Borrow.
Earn a dividend each year.
May entitle you to death benefits.

When advising you the credit union will always consider what is best for your situation. In most cases the recommendation will be to retain your savings and take out a loan with repayments tailored to your personal financial circumstances. In all cases the final decision will be yours.
 

PEOPLE HELPING PEOPLE - NOT FOR PROFIT AND NOT FOR CHARITY BUT FOR SERVICE