Qualifying for a loan

1. In order to qualify for a loan the member must meet the conditions set out in the Co-operative Societies Act and Regulations, and the Rules and conditions of the Credit Union.

• Only members in good standing qualify for loans. A member who has become delinquent of his or her own making will not normally be eligible for a loan until 12 months after making good such delinquency.
• Race, religion, gender, marital status, physical disability, or age is not grounds for disqualification.

• An individual who applies for a loan in excess of share capital must have been a member of the Credit Union for at least six months prior to the date of application.

• The ability of the applicant to repay his/her debt is of paramount importance in deciding on whether or not to grant a loan.  Ability to pay means that the applicant must be able to satisfy all loan obligations on the due date for payment.

Applying for a loan

1. The Credit Union will only accept loan applications in writing on the form provided for this purpose.  Borrowers must document and sign all applications.
   
2. Whenever a co-maker/guarantor is supporting the application such person or persons must complete and sign the relevant section of the application form, the agreement form and the pledge sheet.
   
3. The Borrower and co-maker(s)/guarantor(s) must sign the completed loan agreement.
   
4. The Loan Officer is responsible to see that all sections of the application, including the CO-MAKER’S/GUARANTOR’S STATEMENT, where applicable, and LOAN AGREEMENT are completed and signed by the parties to the loan.
   
5. The Borrower must complete Members Family Budget form.  This is necessary so that those responsible for approving the loan can have a full picture of the applicant’s income and expenditure.  It provides the basis for establishing the borrower’s ability to pay.
   
6. The Credit Committee has the authority to approve all loans.  Loans above $350,000.00 must be referred to the Board of Directors for ratification.  In exercising powers of approval the Credit Committee reserves the right to:

• interview all applicants
• interview all co-makers and or guarantors
• refuse to accept any security(ies) offered
• require the submission of a family budget.

    7.  Provide documents to confirm the purpose of loans which must be for productive purpose

    8.    All loan disbursements are made by cheque.

Loan categories are:

1. Personal Expenses
2. Home Improvement
3. Motor Vehicle Purchase & Repairs
4. Education
5. Computer Purchase
6. Vacation & Travel
7. Purchase Land & Building
8. Funeral Expenses
9. Household Appliances
10. Legal Fee
11. Consolidation of Debts
12. Motor Vehicle Insurance/Property
13. Wedding Expenses
14. Development of Business
15. Household Furnishings
16. Medical Expenses

Periods of Loans

The maximum periods allowable for repayment are as follows:

1. Building or home acquisition  - up to 72 months (6 years).
2. New Vehicles – up to 72 months (6 years).
3. Used Vehicles – up to 60 months (5 years) all vehicles more than one year old, not certified as being in excellent condition will be classified as used.
4. Furniture and Equipment –New – up to 30 months (2 ½ years).
5. Loans made for recurrent expenses not to exceed 12 months.

Securities

1. Free Shares/Deposits/Golden Harvest
2. Bills of Sale
3. Motor vehicles  (condition applies)
4. Hypothecation of Funds
5. Insurance Policies
6. Co-maker (s) /Guarantor (s)

Meetings

1. The credit Committee normally meets on Wednesdays of each week.
2. The Board of Directors meets once monthly on the third Tuesday of each month.