This account allows members of Lephola Savings and Credit to deposit and ask for a credit facility to meet the interest of individual members as well as that of our total members. The cooperative temporarily is lending on short term basis.
Qualification criteria
- The applicant must be a member of Lephola (A/C holder)
- The applicant shall have ability to repay
- The applicant shall show commitment towards his/her project (indebtedness)
- The condition must be conducive for the project to take place or start
- The applicant must be honest and trustworthy (KYC)
- A member’s debt service ratio (DSR) if employed should not normally exceed 50% of total gross income
Application
- Each application shall be considered on its merits
- The application shall set the purpose for which the loan is desired
- The application shall indicate how the loan is going to be repaid
- The application shall state if supported by a collateral (worst case scenario)
- No loans may be disbursed until all conditions requested have been fully complied with
Rate of interest
Interest shall be charged on loans at the rate prescribed by the Board of Management from time to time, but shall not exceed 2% per month on the reducing balance
Character Loans
Character Loans are loans in excess of shares or collateral that can be approved based on the borrower’s past credit history. Character loans are at the discretion of the Manager or Credit Committee
The purpose of character loans is to meet immediate financial problems such as – house and vehicle insurance, medical, funeral expenses, school fees etc.
Requirements to qualify
- Satisfactory credit history
- Ability to repay
- Letter from employer accepting to transfer your salary into your account with Lephola Savings & Credit
- Support investment (collateral)
- Applicants are not automatically legible; assessment will be performed according to credit policy
- Loans are payable within 12 months