HOW DOES ONE BORROW

To access a loan through the Credit Union both loan application and loan agreement form must be completed and submitted to the Credit Union's office.

Members may borrow within shares immediately after joining the Credit Union. However, loans above shares are restricted by the Credit Union's policy, an extract of which is available below.

LOAN POLICY EXTRACT

• Loans shall be made for provident and productive purposes and in accordance with the rules of the Credit Union.
• Normal repayment period shall not exceed 3 years - except for Real Estate and Project Loans, in which case the repayment period shall be decided by Credit Committee
• Members who have saved regularly with the Credit Union shall be eligible for loans on the following basis:
  • Up to six months membership - within shares
  • Membership of over six months - based on the merits of individual applications.
• Members are required to repay 25% of previous loan before new loan is made to them.
• All loan requests in excess of shares must be accompanied by supporting documents.
• Where co-making is offered as security, the co-maker should have free shares, which will be hypothecated, on the completion of the co-maker's hypothecation form.
• Lump sum deposit of one-half or more of the qualifying amount for the loan is subject to a waiting period of six months from the date of deposit or a penalty charge.
• All loans must be adequately secure as stipulated by the Credit Union's security schedule.
• Members are required to contribute 15% of loan repayment to shares.

ACCEPTABLE SECURITIES

• Members' shares in ICD & Associates Co-operative Credit Union Ltd.
• Co-makers with free shares
• First mortgage on unencumbered title
• Land - 66.6% of value
• Motor Vehicles not older than 5 years
• Assignment of 75% Cash Surrender Value (CSV) of life insurance policies
• Guarantee from employer undertaking to repay the loan if member defaults or leaves the company.
• Hypothecation of deposits in Credit Unions, or other financial institution where the amounts transferable and the period of undertaking cover the duration of the loan.