Loan Application and Appraisal

8.1. An application for a loan shall only be considered when an authorized loan application form is used.
8.2. Any outstanding loan must be cleared before a new loan of the same category is disbursed.
8.3. All loan applications shall be made on the Society’s prescribed forms, which shall in each case set out the amount applied for, the purpose of the loan, terms of repayment and type of security provided. The loan application form shall be fully completed and supported by at least two most recent pay slips certified by the employer and a copy of the applicant’s national ID or passport.
8.4. All loans to members shall be insured against death and permanent disability. The insurance premium shall be paid by the member and will be deducted directly from the loan approved upon disbursement.
8.5. All loan applications shall be duly received and stamped on the date of receipt. All loan applications must be recorded in the loan application register in the order in which they are received. Each loan shall be assigned a loan application number.
8.6. Loan applications shall be considered in the order in which they have been received, approved and registered. A loans queue shall be maintained for all loans received pending payment.
8.7. The monthly salary to be considered during appraisal will include basic pay, transport, house, entertainment and hardship/hazardous allowances. Any allowance which is not part of the loan applicant’s monthly income shall not be considered. The Credit Committee may advise on any other allowance which may be considered for loan appraisal.
8.8. No member will be permitted to suffer total deductions including savings, loan repayment and interest in excess of two-thirds of his/her monthly salary.
8.9. Loan applicants who are not in employment but have other sources of income shall be considered on their income from other sources. They will have to attach evidence of that income.
8.10. It shall be an offence for an applicant, Society employees or guarantor to give false information regarding shares/deposits, loans and guarantees.