The society shall have a loan policy approved by the general meeting. All loans shall be approved by the committee with recommendation from the credit committee. Loans shall only be given for worthy purposes that benefit the borrower.
The rate of interest on loans shall be determined by the general meeting on recommendation by the management committee. The rate of interest on loans shall not exceed the current market rates.
Loans may be obtained from non-members subject to the maximum amount and terms approved by the general meeting.
The loan shall be applied for on forms provided by the society. The loan application in each case shall set forth the amount applied for, the purpose for which the loan is desired, the terms of repayment, the security (if any), and such other information as the management committee may require.
All applications for loans and reports theron shall be filed as permanent records of the society.
Loans shall be granted by the committee in respect to the credit limit approved by the general meeting.
No loan shall be granted except for a specified and approved purpose, for a definite period, and at a fixed rate of interest. No loan shall be made to any member in excess of 5% of the society’s total share capital / deposits, and reserves.
Loans shall be repaid according to the terms in the loan application form.
However, a borrower may, on any day on which the society is open for business, repay their loan in whole or in part prior to its maturity, subject to the approval of the management committee.
Any request for an extension of time in which to pay shall be accepted by the management committee only in exceptional circumstances, provided such extensions shall not result in financial losses to the society. Any extension so granted shall be treated as a new loan. An extension agreement shall be executed and signed.
A register of loans to members showing in respect of each loan: the loan number, name of borrower, the amount borrowed, the purpose of the loan, the due date of the repayment, and the date repayments were completed.
Notice shall be given to all members when the society intends to refinance loans. The re-financing of a loan shall be allowed by the management committee only when the society has satisfied all loan demands and has sufficient funds. The re-financed loan shall be treated as a new loan, and subjected to the normal approval procedures.