LENDING REQUIREMENTS - Finnlemm

[Pages:1].LENDING REQUIREMENTS

For a member of FINNLEMM SACCO Society Ltd to qualify for loan: 1. He/She must have been an active member for a period of not less than six (6) months. 2. Must accumulate at least six months continuous deposit on the minimum monthly contributed as may be determined by the

Management Committee/General Membership from time to time. 3. His/her total shares and/or loan repayments should not exceed two thirds of the members net earning.

4. A member applying for a loan must undertake to pledge future salaries from the employer towards loan repayment before such a loan is granted.

5. A member who withdraws from the society and joins later will be treated as a new member for the purpose of this loan policy. The member will however retain his old member number as per registration.

6. Savings contribution paid in cash or cheques to boost deposits outside the check- off system shall remain in the society for at least four months to qualify for a loan.

7. Any amount of savings through the check- off system in excess of one third of a member's basic salary shall remain in the society for a period of four months to qualify for any loan

8. The society's books of accounts have to be up to date in accordance with the co-operative society Act and Rules. 9. A member applying for a loan must also be a contributor to both normal shares and FINBEFU shares. 10. A member granted loan must repay for at last three months before applying for another loan of a different type. 11. If a member granted a loan from a particular institution fails to servicing her/his loan as stated in the loan repayment

agreement form may not qualify for another loan until the other starts servicing his/her loan and the managing committee has approved. 10. Members from institution with irregular remittance shall be granted loans less than their share/deposits. 11. All loans shall be restricted to members only and shall be approved by the Credit committee, subject to final approval by the full Management Committee. No member of the loan approving committee shall be present when his/her loan application is being considered. 12. The Management Committee should constantly be briefed during their monthly meeting on performance of loans granted to staff, Supervisory and Management Committee members. 13. An employee who tampers with his/her monthly share contribution and loan repayment is liable to summary dismissal and prosecution under section 87 of the Co-operative Societies Act. 16. All applicants for loan shall be made in a prescribed form of the society and shall in each case set out the amount applied for, the purpose of the loan, terms of payment and type of security provided. 17. The loan application form must be fully completed and supported by at least three most recent pay slips... 18. Where total deductions exceeds two thirds of a members basic salary, the loan shall be reduced accordingly

FINNLEMM SACCO SOCIETY

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