WAEC MINNA STAFF COOPERATIVE MULTI-PURPOSE SOCIETY LIMITED
Summarized Regulations for Loan Facilities
RULE 1: OBTAINING A LONG TERM LOAN, SPECIAL LOAN AND DISCOUNT
1.1 No member shall be entitled to a long term loan if he/she is in arrears of installment of minimum loan.
1.2 A member is qualified for a discount of allowance only when he/she has exhausted all outstanding loan(s) granted him/her, and the interest rate shall be 3% when applied within a month to statutory payment by Council and at 5% when it is two (2) months.
1.3 A member is qualified for Special loan only when he/she has exhausted all outstanding loan(s) granted him/her.
1.4 For any member to enjoy long term loan, he/she must have been a member for not less than six (6) months.
1.5 For any member to enjoy special loan/discount, he/she must have been a member for three (3) months.
1.6 Special loan has a maximum amount of ₦50,000 with 5% interest.
RULE 2: LOAN REPAYMENT
2.1 Interest on loan capital would be deducted from total savings after payment to the beneficiary.
2.2 Long term loan repayment period is categorized as follows with the interest rates:
- a.) 1 – 12 months installments – 5%
- b.) 1 – 18 months installments – 7%
- c.) 1 – 24 months installments – 10%
2.3 Bulk repayment of long term loan shall be allowed and the interest rate charged shall remain unchanged. Any member who cleared his/her debt by this shall observe one (1) month interval before qualifying to apply for another long term loan.
2.4 Payment of discounts of claims/allowance after the month of payment by Council shall attract additional charges of 2% interest monthly, while the 3% basic interest shall remain. Same shall apply to payment without interest and defaulter(s) shall be ineligible for any other product.
2.5 Special loan repayment period is for a maximum of five (5) months.
2.6 Failure of repayment of discounts after three (3) months shall attract recouping from the savings of the defaulter(s).
RULE 3: COOPERATIVE SAVINGS LEDGER
3.1 No cash withdrawal shall be made from members’ savings.
RULE 4: SURETY BOND
4.1 There shall be no surety bond for a long term loan below the savings balance of a member.
4.2 A guarantor of loan stands bound to repay an approved sum, should the said borrower defaults.
4.3 The society shall use shares and savings/capital balances to recoup all due sum to the cooperative for both defaulting and withdrawing members.
RULE 5: LOAN APPROVAL
5.1 Applicants for long term loan MUST give ONE month notice before approval can be given to such request.
5.2 Long term loan shall be approved once in a month.
5.3 Special loan/discount shall be approved twice in a month.
5.4 In a case where there is inadequacy of fund to give loan to many applicants who may apply at a particular time for loans, the committee member should consult with the applicants to sort things out.
RULE 6: ESSENTIAL COMMODITY (ESSENCO)/COW MEAT
6.1 ESSENCO will be procured and distributed to interested members once in four months.
6.2 Payment of ESSENCO and Cow meat shall henceforth be deducted from source. Payment of cash is not allowed.
RULE 7: OTHER PRODUCTS
7.1 Other products aside those stated in 6 above, shall be accommodated at least once in a year.
7.2 Payments shall be tagged to specific allowance(s) in the period as agreed by the executive committee.
RULE 8: WITHDRAWAL OF MEMBERSHIP
8.1 Two (2) months notice is required for withdrawal of membership. Any period less than two (2) months attracts 2% administrative charge from the total savings of the member(s) concerned.
