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Our Loan Policy

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  • The Union shall grant loans to its members.

 

  • Loans shall be granted for any worthwhile purpose-productive or provident.

 

  • Application for loans must be in writing on the prescribed forms.

 

  • For the first six (6) months of membership, members shall receive loans times 3 of savings balance
    A loan shall not be made by the Credit Union to a member for a period exceeding two (2) years commencing on the date on which the loan is paid to the member.

  • The Management Board shall determine the maximum loan to be granted to a member from time to time.

 

  • Loans shall be secured by the borrower’s own savings.

 

  • Petra tier 3 of BOST staff may be used as guarantee to a loan. A written agreement between the borrower and Credit Union whereby the borrower agrees to reimburse the Credit Union for any amount of the Petra pledged against any unpaid or overdue loan balance.

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  • Members shall be charged an interest on loans at competitive rates. However, the minimum interest rate to be charged shall be determined from time to time by the Credit Union movement.

  • In case a loan is not repaid according to the terms of the loan bond, the borrower shall be liable to pay the collection expenses. In case a loan is not repaid according to the terms of the loan bond, the borrower may be liable to pay unpaid balance.

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