Loans Products

CATEGORY A LOANS

Short Loan

  • Maximum loan granted shall be E5 000 per member.
  • Maximum repayment period is 12 months.
  • Interest rate is 8% per month.

Emergency Loan

  • Loan granted shall not exceed E10 000.
  • Maximum repayment period is 12 months.
  • This loan is for extraordinary expenses such as medical and funeral expenses, natural disasters and court fines. It shall not include, house rent, school fees, or any other loans covered in this policy. In all cases, documented proof shall be required.
  • Loan shall not exceed member’s savings.
  • Interest rate is 1.5% per month.

 

CATEGORY B LOANS

Ordinary Loans

  • Loan granted shall be three times the member’s savings.
  • Maximum repayment period is 120 months.
  • Interest rate is 1.3% per month.

Settlement Loan

  • This is granted to members who are permanent employees or have a new fixed-term contract.
  • The purpose of the loan is to assist the new employee to establish himself/herself.
  • Must have been employed for not more than twelve months.
  • Letter of employment must be submitted and then complete application forms with proof of bank account.
  • Maximum Loan granted is E30 000
  • Maximum repayment period is 24 months
  • Interest rate is 1.5% per month

Special Loan

  • Maximum repayment period is 12 months.
  • Maximum loan granted is E50 000 per member.
  • Interest rate is 1% per month.
  • Loan shall be paid directly to a registered and licensed school/institution, supplier or service provider.

 

CATEGORY C LOAN

Vehicle Financing Loan (Deduction from source)

  • The total loan balance for this loan type shall not exceed E1.5 million.
  • Maximum loan shall not exceed E500 000 per member.
  • Maximum repayment period is 72 months.
  • Interest rate is 0.9% per month.
  • Letter from employer acknowledging to deduct from source
  • Quotation from registered garage
  • Paid directly to garage.

Vehicle Financing Loan (Deduction from secondary)

  • Must have been a member minimum two years.
  • The total loan balance for this loan type shall not exceed E1.0 million.
  • Maximum loan shall not exceed E250 000 per member.
  • Maximum repayment period is 72 months.
  • Interest rate is 1.2% per month.
  • Quotation from registered garage
  • Paid directly to garage.

Consolidation Loan

  • Must have been a member for more than two years.
  • Maximum loan shall not exceed E500 000.
  • Maximum repayment period is 120 months.
  • Interest rate is 1.35% per month.
  • Proof of loan balances and/or amounts owing.
  • Paid directly to the creditors

Rural Home Development Loan

  • Must have been a member for more than three years.
  • Loan shall not exceed three times the member’s savings or 60% of the member’s pension provided it is secured against the loan.
  • Maximum repayment period is 120 months.
  • Interest rate shall be prime + 2.5% per annum.
  • Letter from Umphakatsi.
  • Three quotations from registered contractors.
  • Only 20% paid directly to member.