The following types of loans shall be available:
- Personal Surety Loan
- Short Term Loan
- Medium Term Loan
- Wedding Loan
- Fast Track Loan
- Staff Loan
- Exception Loan
General Rules
- All ordinary members shall be eligible to apply for only ONE loan of any type from above (a) to (d) and/or (e), provided that the total sum of the loans granted shall not exceed: (i) $50,000 for those whose salary is on check-off arrangement or with one (1) surety if their salary is not on check-off arrangement. (ii) $30,000 for those whose salary is not on check-off arrangement.
- Associate/Family/Contract members are only eligible to apply for a Short Term Loan.
- Members shall not claim a loan as a matter of right.
- Admin Fee is payable on all loans granted, except for Personal Surety Loan.
- It shall be within the powers of the Committee of Management to reject, defer or reduce the amount of loan applied for without a need for an explanation.
- When a member is granted a loan, he shall agree to the deduction of installments and interest from his salary by his employer or by interbank GIRO deductions.
- Associate/Family/Contract 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.
- A borrowing member may repay a loan in whole or in part at any time before the due date without any penalty.
- The Committee of Management may approve members’ request for suspension or reduction of loan principal repayment. Such suspension or reduction can be considerd only after six (6) monthly installments have been effected. Under exception circumstances the Committee of Management may consider the request for suspension of loan principals from members who have not met six (6) monthly instalments payment, on a case by case basis.The length of suspension of Loan Principal allowed shall be six (6) monthly installments. The Committee of Management may at its discretion allow the suspension period to be extended by a block period of six months up to a maximum of 18 months on a case by case basis. Members shall pay the interest on the loans during the suspension period.
- 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. - The Committee of Management shall review the interest on loans every half yearly. They reserve 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 when a member is in:
(i) financial difficulties;
(ii) or for any other reasons acceptable by the Loan Committee.Such waiver shall require the approval of the Committee of Management. - Loan Interest Waiver – Members granted permission to make part payment of their loans will have their loan interest waived once they have made the necessary numbers of loan repayment as stated in their original loan application. Such members will be requested to make a higher monthly loan repayment towards their loans.
- Reduced Repayment in Monthly Loan Instalment – Reduction of loan repayment may be granted to members for six (6) months only. Thereafter normal repayment will resume. Members may be granted extension of another six (6) months upon request on a case by case basis.
- Loan Default – In the event a member defaults in loan repayment for more than three (3) months without valid reasons, the society reserves the right to debit all his credit balances including his Share Capital to off-set his loan balance.
- Bankrupt – Any borrower who is declared a bankrupt whether self-declared or by a third party shall have his membership terminated. His outstanding loan balance shall be placed under loans to members as bad-debt. Such bad-debt shall be presented to the Committee of Management for write-off.
- Doubtful Loans – Borrowers who have defaulted in payment for a period of twenty four (24) months, and after all means to recover the loan balance have been exhausted, shall have their outstanding loan balance presented to the Committee of Management for write-off as bad debts on a half yearly basis. The write-off amount would then be reported inthe statement of accounts and presented to members at the AGM.
- Should a member cancel/withdraw his loan application after it has been processed and approved, an administrative fee of $30.00 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).
- Contract Teachers: (i) Flexi-adjunct – Only eligible for Personal Surety Loan. (ii) Contract-adjunct – Maximum of $10,000. Loan repayment period will be based on their contract period.
- Loans to New Members.
(a) Application fpr loan will only be considered upon Committee of Management’s approval of membership.
(b) A member whose dues have yet to be effected through the Central Pay Office (CPO) may apply for a loan provided he first makes a cash payment of two months for his Share Capital (minimum $40.00), $10.00 entrance fee and $2.00 for Common Good Fund.
(c) An Associate/Family/Contract member whose applies to pay his dues through InterbankGIRO must have the first deduction effected before he can apply for a loan. - For calculation of loan quantum eligibility income means the total gross monthly income of the borrower before contribution to CPF and other deductions. This may include passive income (e.g. rental income) received by the borrower, with documentary evidence.
- In the case of a loan of $10,000 or more, the borrower is required to provide a credit report from credit bureau. Litigation for motor-car accidents which are 5 years and above will not be taken into consideration during scrutiny.The loan processing officer shall obtain the credit evaluation on the borrowers through the society’s computer system which is linked to the Singapore Credit Bureau.
- For Education, Medical or Renovation loans, documentary evidence is required. Renovation loan is limited to $30,000. For Education and Medical loan, the Committee of Management may approve a sum greater than the eligibility of the borrower, on a case by case basis.
Terms and Conditions
A member is eligible to apply for a Personal Surety Loan up to the actual amount of the total of his paid-up Share Capital and Term Deposits. A member who is granted a Personal Surety Loan using his Share Capital and Term Deposit as eligibility shall not be allowed to withdraw his Term Deposit unless the loan is fully settled.
Such a loan shall be repayable in not more than 60 monthly installments commencing from the month the loan is granted. The Committee of Management may in exceptional cases approve the repayment over a longer period. Any two members from the Loan Committee or one member and the Senior Manager may approve the loan.
(b) Short Term Loan
Ordinary Member. An ordinary member is eligible to apply for a Short Term Loan of $20,000, or six (6) times his gross salary, whichever is lower. Such loan shall be repayable in not more than 36 monthly instalment. Share Capital of the borrower can be included when computing the eligibility.
Associate/Family/Contract Member. Such a member is eligible to apply for a loan of $10,000, or four (4) times his gross salary, whichever is lower. Such loan shall be repayable in not more than 24 monthly instalments.
Contract member loan repayment period shall be the length/balance of his contract period, whichever is less.
For amount of $3,000 and below, no surety is required. For amount of more than $3,000 and up to $10,000, the borrower would need to provide a surety who should be gainfully employed. The surety need not be a member of the society.
Retired Members. Retirees are eligible to borrow up till $3,000. Such loan shall be repayable in not more than 24 monthly instalments.
For the above loans, interest rate shall be pegged at 0.5% above the Personal Surety Loan rate.
(c) Medium Term Loan
A member may apply for an amount of $50,000 or $30,000 subject to the following:
(i) An ordinary member on check-off arrangement may borrow up to six (6) times his salary or $50,000 whichever is the lower. If he has no check-off arrangement, he needs to provide a surety who should be gainfully employed.
(ii) An ordinary member who has no salary check-off arrangement may apply for a loan up to four (4) times his monthly salary or $30,000 whichever is lower, without a surety.
Share Capital can be included when computing the eligibility. Such a loan shall be granted 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 land for building a house for his own use; setting up a home or renovation. Such a loan shall ordinarily be repayable in not more than 60 monthly instalments commencing from the month the loan is granted. The Loan Committe may in exceptional cases approve a longer repayment period depending on the amount borrowed. Interest rates and repayment shall be fixed by the Committee of Management from time to time.
(d) Wedding Loan
This loan is offered to Ordinary Members who are getting married. The total amount of loan allowed shall not exceed six (6) times the members’ salary or $30,000 which ever is the lower. Member’s Share Capital can be used to compute the eligibility. The loan is repayable in 36 monthly installments.
For early settlement of loan of less than 12 monthly, members shall be charged an additional 1% on original loan granted amount when they settle their loan. No suspension of loan repayment shall be allowed. There will be no refund of any part of the loan Admin Fee for early settlement of the loan.
A borrower is required to submit documentary proof of wedding expenses or a copy of the Registry of Marriage certificate.
(e) 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. The loan is repayable in 12 to 24 monthly installments. There shall be no refund of the Admin Fee should the loan be settled early. Interest rate for the loan is 3.5% per annum. Interest on the loan and the admin fee plus GST shall be paid up front. Any two members from the Loan Committee or one member and the Senior Manager may approve the loan. Once the application is approved, the loan would be disbursed within three (3) working days. No suspension of the loan repayment shall be allowed. For retired members the quantum remains fixed at $3,000.
(f) Staff Loan
Confirmed staff are eligible to take a loan not exceeding four (4) times their gross salary or $30,000 which ever is the lower. All other terms and conditions shall remain the same as those applicable members. Such a loan shall be repayable in not more than 60 monthly instalments.
Contract staff loan repayment preiod shall be the length/balance of his contract period, whichever is less.
(g) Exceptional Loan
All other terms and conditions shall remain the same as those applicable to Medium Term Loan. members of the Loan Committee could decide on the quantum and recommend it to the Committee of Management for approval. Such a loan shall be repayable in not more than 60 monthly instalments.
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