CHINHOYI UNIVERSITY OF TECHNOLOGY



CHINHOYI UNIVERSITY OF TECHNOLOGY

PERSONNEL DEPARTMENT

HOUSING LOAN SCHEME

INFORMATION AND CONDITIONS FOR THE HOUSING LOAN SCHEME

1. Purpose of Loan

The purpose of the Housing Loan Scheme is to provide access to the Chinhoyi University of Technology employees to loans ranging from ten million dollars ($10 000 000) to one hundred million dollars ($100 000 000,00) to be repaid over a period of not more than five years or can be reduced to length of one’s contract at a compound interest rate of 16% per annum. The amount and period of repayment can be reviewed from time to time. The purpose of loan shall be :-

i. Purchase of a house

ii. Building a house or part thereof (or developing a stand) or

iii. Completing a house

2. Administration of the Loan Scheme

The Vice-Chancellor, through the Bursar’s and Registrar’s Departments shall operate the Housing Loan Scheme as a Revolving Fund. The scheme shall be administered through the Personnel Department.

3. Eligibility

i) All permanent employees of the Chinhoyi University of Technology who have completed their probation and whose retirement date is later than the date of completion of the loan repayment will be eligible for this scheme.

ii) Normally, no Housing Loans will be granted under this scheme in respect of employees:-

a) On probation

b) On Temporary employment

c) On Suspension

d) On Unpaid leave

e) On Contract of less than 4 years

f) On Part-time employment

g) Aged over 65

h) Vice-Chancellor & Pro-Vice-Chancellor(s)

iii) Each application for a loan under this scheme shall be considered on its own merits and at the discretion of the Chinhoyi University of Technology.

iv) Development of houses, that shall qualify for loans under this scheme shall be restricted to:-

a) Chinhoyi

b) Alaska

c) Banket

d) Lions Den

• Stands/Houses intended for purpose of development that shall be considered for loans under this loan scheme shall be those registered and serviced within the urban areas or peri-urban areas stated above as defined by the Urban Councils Act.

v) No employee shall apply for a second loan under this scheme before the expiry of a period of at least five years and while the previous loan has not been fully repaid to the Chinhoyi University of Technology.

4. Applications

i) An application for a Housing Loan should be made in the first instance, by completing the relevant form and submitting it to the Deputy Registrar, after ensuring that appropriate sections have been completed by the applicant, Chairperson/Head of Department and Dean.

ii) On receipt of the application form, the Deputy Registrar, through the Head of Section under which the applicant falls, shall certify that the information on the form is complete and correct, before forwarding the form to the Director of Works and Estates for recommendation.

5. Loans Applications Consideration Committee (LACC)

▪ The Loans Applications Consideration Committee’s (LACC) role shall be to consider and recommend loan applications of the following schemes to the Vice-Chancellor in his capacity as the Chairperson of the Salaries and Conditions of Service Committee:

➢ Housing Loan Scheme, Vehicle Loan Scheme and Computer Loan Schemes

▪ The Deputy Registrar shall be the Chairperson of the Loans Applications Consideration Committee.

COMPOSITION OF THE LOANS APPLICATIONS CONSIDERATION COMMITTEE

i) The LACC shall be made up of sixteen members (including the Chairperson) at the University and include the following people:

Representative from Staff Associations (7)

The Information and Communication Technology Director

The Director of Works and Estates

The Internal Auditor

Three academics of lecturer grade or higher

Two Senior Administrators and

The Bursar who shall be an automatic member

The Assistant Registrar Personnel shall be the Secretary.

ii) To consider progress reports of the Loans issued.

iii) To consider any matters relating to the administration of loans referred above.

iv) The Vice-Chancellor reserves that right to dismiss any member or dissolve the LACC.

▪ Members appointed to the Loan Consideration Committee (LACC) shall be expected to meet the following criteria:

a. Have never been charged of any misconduct at the Chinhoyi University of Technology.

b. Have served at the Chinhoyi University of Technology for over one year.

c. Have demonstrated beyond any reasonable doubt that he/she is honest, diligent, trustworthy, firm and fair.

d. Does not hold a post in the Workers’ Committee or any Staff Association.

6. Loan Approval/Rejection

i) The Loans Application Consideration Committee (LACC) shall sit from time to time to consider Housing Loan Applications. The Loan Consideration Committee, reserves the right to refuse to approve any loan under this scheme.

ii) After consideration of Housing Loan Applications, the LACC shall forward, together with the minutes, the applications forms to the Vice-Chancellor, through the Registrar, for his approval/rejection.

iii) The Vice-Chancellor reserves the right to overturn the decision of the LACC.

iv) Subsequent to step 6 (i) – (iii) above, The Deputy Registrar shall inform the member in writing of the outcome of the application.

Such notification of approval shall contain the following information:

1) The applicant’s name

2) The approved amount of Housing Loan

v) In the case of rejection of an application for a Housing Loan, the applicant’s form shall be kept on file with the rejection attached thereto, for further consideration or reference in the event of the applicant (re)submitting a second application then, or later.

vi) Such rejection letter and the completed application form, and any papers/documents thereto, shall be kept on file at the office of the Assistant Registrar (Personnel) for recall, reconsideration, and or reference in future by the Chinhoyi University of Technology under this, or any other loan scheme.

vii) The approved Application Form shall, be returned to the Deputy Registrar, who shall, through the Head of Section under whose jurisdiction the applicant falls, advise the applicant of the success of their application in writing.

viii) The applicant whose Housing Loan Application has been approved, shall be required to produce the following documents:-

a) For Housing Loan to purchase a house:-

Applications shall have attached;

i. Copy of title deeds of the seller (if available) and/or

ii. Copy of Agreement of or intention to sell.

b) For a loan to develop a stand or construct a house, or complete a house:-

Applicants should attach:-

i) Copy of confirmation of stand ownership (title deeds if available)

ii) Approved Plan indicating the intended development.

Once approved, loans in respect of developing a house/stand can be paid out in trunches not exceeding three payments made in favour of the applicant or company/contractor engaged to provide such service.

ix) Such information as on viii) a-b above shall be requested from the applicant through the application form.

x) Subsequent to the submission of all the documents in viii) a-b above, the Deputy Registrar through the Head of Section under whose jurisdiction the applicant falls shall:-

a) Check that all sections of the application form have been attached.

b) Check with the independent valuator and certify that it was in fact the independent valuator who valuated the cost of the stand/house.

c) Check with the City/Town Council to certify that the information given is authentic.

**Applicants are advised to avoid committing themselves to a particular purchase until they have been notified of the approval of their loan applications. The Chinhoyi University of Technology shall not be bound to any purchase as it reserves the right to approve or reject an application. The Chinhoyi University of Technology reserves the right to inspect the house prior to approval of the loan.

7. Amount of Loan

i) The amount of the loan shall be relative to the employee’s salary and shall be such that the monthly repayments of the loan plus interest, must not exceed twenty five percent (25%) of the employee’s monthly gross salary. This condition is intended to restrict the possibility of the applicant becoming insolvent.

ii) The maximum amount of the loan shall be Z$100 million but applicants may apply for any amounts not less than Z$10 million, subject to conditions stated above but will be reviewed from time to time.

iii) The payment shall be made in the name of the applicant.

8. Interest

Interest of the Housing Loan shall be compounded at the rate agreed from time to time by the University.

9. Terms of Loan Repayment

i) The employee shall be levied the amount of the monthly installments, deducted off their salary through the Deputy Registrar, commencing on the month immediately subsequent to the granting of the Housing Loan.

ii) The loan shall be repaid over a period not exceeding five years (60 months)

10. Security

i) The security of the loan shall be the house or stand developed under this scheme.

ii) The House or Stand purchased under this scheme, shall NOT under any circumstances be sold without the prior notification of and written consent from the Vice-Chancellor of the Chinhoyi University of Technology until after the completion of the full repayment of the loan.

11. Procedures for Purchasing a House/ Developing a House/Stand

i) After all procedures in 6 (i)-(iv) above have been done, applicant submits all the documents in 6viii) a-b above.

ii) The Deputy Registrar through the Head of Section under whose jurisdiction the applicant falls, checks all the relevant documentation as stated in 6 viii) a-b above.

iii) The completed application form together with the attachment is submitted to the Vice-Chancellor, who will authorize the Bursar to pay as in 7 iii) above.

iv) If the stand/house does not qualify to be purchased under this scheme, the Deputy Registrar, through the Head of Section under whose jurisdiction the applicant falls, shall inform the applicant accordingly and the latter shall be entitled to look for a house/stand which qualifies on the strength of his/her already approved application.

v) The Deputy Registrar through the Assistant Registrar (Personnel) shall retain the Application Forms, (and their attachments) and the original agreement made between the Chinhoyi University of Technology and the employee.

12. Termination of Loan

i) The loan may be repaid in full at any time after it has been in operation.

ii) If the redemption of the loan was made from the proceeds of the disposal of the house purchased or stand developed under this scheme, the applicant shall not be entitled to another Housing Loan unless he/she can demonstrate that the sale or disposal was unavoidable (documents and relevant evidence to be produced).

13. Termination of Service

i) If, before the loan and interests thereon has been fully paid, the employee resigns, retires or is dismissed, or discharged, from the service of the Chinhoyi University of Technology, for any reason, or commits any breach of the agreement between him/her and the University, the Chinhoyi University of Technology will require him/her to pay the outstanding balance of the loan plus any interest thereon, immediately by way of cash settlement failing which the Chinhoyi University of Technology will recover the outstanding indebtedness through a deduction from the terminal benefits and/or other accrued earnings of the employees and/or from the employee, and/or from the proceeds of the sale of the house/stand by the Chinhoyi University of Technology which, the Chinhoyi University of Technology, shall repossess for the same purpose.

ii) If before the loan and interest has been fully repaid, the employee dies or becomes insolvent, assigns his estate or makes any composition or arrangement with his creditors, the agreement between the employee and the Chinhoyi University of Technology shall be terminated forthwith and the whole of the outstanding amount and interest thereon shall immediately become due and payable to the Chinhoyi University of Technology from the employee’s estate or insolvent estate as the case may be.

iii) Take an insurance to cover the period of the loan.

14. Disqualification/Withdrawal of a Loan

i) Applicants are advised to avoid withholding, falsifying and/ or misrepresenting information which may lead to the prejudice of the Chinhoyi University of Technology.

ii) a) Such falsification, withholding and/or misrepresentation

may lead to the immediate withdrawal of the application if the deed is discovered prior to approval.

or

b) The immediate termination of the agreement and effectively making the total balance on the loan due, if the deed is discovered after the payment or part or all the

loan.

iii) Disciplinary action may be taken against such member including disqualification from any and all such loan schemes.

15. General

i) This document gives the general conditions only. Prospective applicant(s) can obtain further details from:-

The Personnel Department

Chinhoyi University of Technology

Private Bag 7724

CHINHOYI

Phone:- (067) 22203/5

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