Loans
The following types of loans are available:
(i) Personal Surety Loan
(ii) Short Term Loan
(iii) Medium Term Loan
(iv) Fast Track Loan
(v) Wedding Loan
(vi) Fixed Term of $10,000
General Rules
- All members shall be eligible to apply for only one loan of any type from (i) to (iii), provided that they satisfy the stipulated conditions. In addition to the above, a member may apply for a loan under (iv). The total sum of loans granted shall not exceed $60,000 except for Personal Surety Loan.
- No member shall claim a loan as a matter of right.
- All applications for loans shall be submitted on prescribed forms to the Loan Committee stating the purpose for which the loan is intended except Personal Surety Loan.
- All loan applicants shall provide one or two sureties as the case may be to guarantee the settlement of the whole loan amount. Loan may also be granted by member paying a Loan Admin Fee to the Society’s Loan Admin Fund.
- It shall be within the powers of the Committee of Management to reject, defer or reduce the amount of loan applied for. No explanation need be given.
- When a member is granted a loan or becomes liable as a surety for a loan, he shall agree to the deduction of installments and interest from his salary by his employer.
- Associate/Family members shall authorize the deduction of installments through GIRO.
- Loans shall be disbursed to members only after complete execution of bonds and other necessary documents.
- The total liability of an ordinary member to the Society, either as a borrower, or as a surety shall not exceed ten times his gross salary plus the total of his share capital.
- A borrowing member may repay a loan in whole or in part at any time before the due date without any penalty.
- In the case of surety loans, every member shall undertake to inform the Loan Committee should any of his sureties become ineligible to continue as such on the grounds of cessation of membership or for any other reason whatsoever.
- It is the duty of the borrower to provide fresh surety whenever anyone of the existing sureties dies, or ceases to be a member, or is otherwise ineligible to continue as surety.
- The original surety shall not be relieved of his liability until a new surety has been approved by the Loan Committee, or full payment of the loan has been made. The Loan Committee shall recall immediately the loan in full should the borrower fail to satisfy the above conditions. A loan granted under the Loan Admin Fund shall not absolve the borrower from full settlement of the loan.
- Under exceptional circumstances the Committee of Management may sanction the postponement or reduction of any loan installment. The suspension of loan principal or reduction of loan installment shall only be considered after 6 monthly installments have been effected.
The normal suspension period allowed for the duration of a loan is 6 monthly installments. The Committee of Management may at its discretion allow an extended period of suspension. For loans granted under the Loan Admin Fund, guarantor/guarantors are required for suspension of loan principal exceeding 6 monthly installments.
The Society shall continue to change interest on the loans during the suspension period.
Request for the reduction on the repayment of monthly loan installment shall be considered on a case by case basis.
- A loan shall be recalled immediately with interest without any reference to the term for which the loan was granted in the following cases:
(i) cessation of membership;
(ii) use of the loan for purpose other than that for which it was granted. - The interest payable on a loan shall be according to the rate stipulated for the type of loan.
- For the purpose of calculating interest payable for any period of a month, interest will be computed based on
(i) settlement date for existing loan and
(ii) disbursement date of a new loan. - No application for a new loan shall be considered unless a borrower has paid up at least 6 monthly installments or 50% of his existing loan, except in the case of a Personal Surety Loan.
- The Committee of Management reserves the right to change the interest rates for all loans and the Administrative fees from time to time.
- The Loan Committee may consider the waiver of loan interest and the restructuring of loans based on the following circumstances:
(i) a member in financial difficulties;
(ii) any other reasons acceptable by the Loan Committee.Waiver of such interest shall require the approval of the Committee of Management.
- Should a member cancel/withdraw his loan application after it has been processed and approved, an administrative fee not exceeding $50 shall be imposed on the applicant.
- In the event of death, the Committee of Management may at its discretion, waive the interest chargeable on a loan with effect from the month following the death of the borrower.
- All members with loans and who retire/resign from service shall settle their loan balance in full. A retired member may continue to pay by installments provided his continuation for membership is first approved by the Committee of Management. The borrower shall provide one or two guarantors depending on the amount of loan balance (The guarantor must be a person above 21 years of age and be gainfully employed).
- Loans to New Members.
(i) The application will only be considered upon Committee of Management approval of membership.
(ii) A member whose dues have yet to be effected through the CPO may apply for a loan provided he first make a cash payment of 2 months for his share capital (minimum $40) $10 entrance fees and $2 of Common Good Fund. A total minimum of $52.
(iii) A member who applies to pay his dues through GIRO may apply for a loan only after the Society has received 2 payments from his bank.
Types of Loans
A member is eligible to apply for Personal Surety Loan up to the actual amount of the total of his paid-up share capital and term deposits.
Such a loan shall ordinarily be repayable in not more than 60 monthly installments commencing from the month the loan is granted. The Loan Committee may in exceptional cases approve repayment over a longer period depending on the amount borrowed.
An Ordinary/Associate/Family member is eligible to apply for a Short Term Loan. Associate and Family members must be gainfully employed if they wish to apply for such a loan.
Ordinary members may apply for a loan not exceeding four times his monthly salary or $8,000 whichever is the lower. This loan may be granted on the security of member providing one eligible surety who must be a member of the Society, or by payment of an admin fee to the Society’s Loan Admin Fund.
Associate/Family member is eligible to apply up to two times his monthly salary or $6,000 whichever is the lower. This loan may also be granted upon the applicant paying the admin fee due and providing a gainfully employed guarantor.
Such a loan shall ordinarily be repayable in not more than 12 monthly installments commencing from the month the loan is granted provided that the Loan Committee may in exceptional cases approve extension of the repayment period by a maximum of another 12 months.
A member is eligible to apply for a Medium Term Loan on the security of the total of his paid-up shares and term deposits and that of two sureties who are members of the Society, each of whom shall cover the whole loan less the total of the borrower’s paid-up shares and term deposits. In the event of a default by the borrower, both sureties shall be jointly liable for the loan balance. If the borrower and one surety are unable to make payment, the other surety shall settle the loan balance in full.
In place of sureties, this loan can also be granted upon the borrower paying an in-house Loan Admin Fee.
The amount of such a loan shall not exceed ten times the borrower’s monthly emoluments plus total of his paid-up shares and term deposits or $60,000 whichever is the less.
Such a loan shall be allowable only for purpose(s) of education of the member or his dependents, purchase of a motor vehicle for personal use, tour, medical expenses, purchase of a flat, a house, or loan for building a house for his own use; setting up a home or renovation. A borrower may be required to submit documentary evidence for such a loan at the discretion of the Committee of Management.
Such a loan shall ordinarily be repayable in not more than 60 monthly installments commencing from the month the loan is granted. The Loan Committee may in exceptional cases approve a longer repayment period depending on the amount borrowed.
(iv) Fast Track Loan
Only ordinary members are eligible for this loan. Retirees with a paid-up share capital of $2,000 may be allowed to apply for this loan.
The amount shall be fixed at $5,000 for working members. Retirees and Non-working members the quantum remained as fixed $3,000. The loan is repayable in 12 monthly installments. There shall be no refund of the admin fee should the loan be settled early. Loan Admin Fee is fixed at 1% of the loan amount. Interest on the loan and the admin fee plus GST shall be paid up front. Any two members from the EXCO/Loans Committee may approve the loan.
Once the loan application is approved, the loan would be disbursed within three working days. No suspension of the loan repayment shall be allowed.
(v) Wedding Loan
This loan is offered to ordinary members who are getting married. The total amount of loan allowed shall not exceed ten times the members’ gross salary or $20,000 which ever is the lower. The loan is repayable in 36 monthly installments. Interest rate is fixed at 4.5% per annum.
For early settlement of loan of less than 12 monthly, members shall be charged a total interest rate of 1% per annum higher than the Wedding Loan interest rate minus the amount of interest members had paid to the Society. Members need to pay a Loan Admin Fee to the Society to secure such a loan. No suspension of loan repayment shall be allowed. No refund of any part of the loan admin fee will be given for early settlement of the loan.
A borrower is required to submit documentary proof of wedding expenses and a copy of the Registry of Marriage certificate. The registered marriage must take place within six months from the time the loan is granted.
(vi) Fixed Term of $10,000
Ordinary members who do not have an existing loan with the Society may apply for this loan. This loan shall be fixed at $10,000. The loan shall be repayable at 24 monthly installments. Interest is fixed at 3% per annum. The Committee of Management reserves the right to change the interest rate from time to time.
For loan that are settled less than 12 months of repayment, member shall be charged a total interest of 3% per annum minus the amount of interest that has already been paid to the Society.
Member need to pay a Loan Admin Fee to the Society to secure a loan. No suspension of loan shall be allowed. No refund of any part of the loan admin fee will be given for early settlement of the loan.
For more details, please contact our staff @ 6440 4393.
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