CONSUMER LOAN
A consumer loan is one availed to full time employees of companies to enable them improve their standard of life and living. It is available for the purchase of home assets such as generators, refrigerators, air-conditioners, settees, washing machines, etc.
The facility must be guaranteed by the respective employer and repayment must be by monthly deduction from the employee's salary. The employee must be a confirmed staff of the company and total deductions must not be in excess of 50% of his net pay.
Also the company must be a preferred company with reputation for honouring obligations and must itself have being in business for not less than three (3) years.
However, we can accept members who are self employed but they must be able to demonstrate or show a consistent repayment source such that fluctuations in their business will not affect payment of their rentals.
BUSINESS LOAN
This Loan facility is applicable to members of the cooperative in order to invest in income yielding endeavor. The amount obtainable shall not be more than 5times the savings of a member subject to periodic limits as may be determined from time to time for purpose of liquidity control & even spread of credit facilities.
It is usually required to augment existing working or trading capital.
PERSONAL LOAN
This type of facility is viewed as a fast tract and easy to access one. It is meant to quickly address domestic/personal matters. It is so considered because of the exigency of the matter it is meant for.
The amount obtainable in this case shall not exceed 50% of total account balance of a member, subject to a maximum of N100, 000.00 (One hundred thousand naira only).
The loan is available only to members of the cooperative who have met all financial obligations and must have attended 75% of meeting.
CHEQUE EXCHANGE
This type of loan facility is for full time employees of blue chip companies such as banks, telecoms, oil & gas. It is tailored towards meeting/bridging short-term financial gap. There is no limit to the amount obtainable, but repayment installment must not exceed 30% of the employee's salary after all deductions has been made.
The borrower will issue cheques corresponding to repayment installment already agreed by the credit officer. The cheques must be issued from salary account of the employee. Whilst he/she would have provided pay slips, bank statement and copies of employment and confirmation letter respectively.
The credit officer may wish to obtain collateral so as to have a good fall back position in the event of the borrower losing his job.
LPO FINANCE
The name implies local purchase order, a short-term facility needed for execution of purchase orders or supplies etc. An LPO is issued in the business name/trading name of the member or non member. However we will prefer to deal with conglomerate or blue chip companies that would have been in business for not less than five years and also has a track record of meeting financial obligations. In addition the applicant and Lpo issuer must agree to domicile all payments in favor of the cooperative.
HOUSING/RENT LOAN
This type of facility is a loan that a member applies for in order to rent an apartment or for renewal purposes, in addition for the purchase of building materials for construction. Amount obtainable in this case will be depending on the total package of the rent. The tenor is to be from 5months to a maximum of 12months and repayment is monthly subject to a moratorium of 30days. Interest is charged on a reducing balance basis.
