All members have an equal opportunity to borrow from the different loan types of the society. The members’ entitlement differs in accordance to each type of loan. This arrangement means that in the event of death, the debt is automatically cleared.
Members are given loans to a maximum of two times savings but after a member has served a probationary period of 6 months. The interest rate is decided from time to time. However the maximum loan per member is E350,000.00 at flat interest rate of 1.6% per month. NB: The 5c’s i.e. Character, Capacity, Collateral, Capital requirements, Circumstances) and lending principle is used.
In the event of death and sudden hospitalization of a member or his next of kin (except where Burial Scheme should apply), he may apply for an emergency loan. This loan is obtainable even if a member has an on-going loan with the society but the total amount of loan should not exceed three times the members savings.
This product has been designed to cater for small and pressing needs of members. The maximum amount that may be borrowed is E1,000.00 at flat interest rate of 5%. For members’ convenience short loans are approved by the manager and must be repaid in full within 60 days.
Medium Term Loan
This loan was designed for all members of Sibonelo who want to boost their money – making businesses. This loan is between E1,000.00 and E15,000.00 and repayable within 6- 12 months at an interest rate of 1.6% per month.
This product was developed to help members acquire farm input, building material and any other hardware. This loan is between E1,000.00 and E20,000.00 and repayable within 6- 18 months at an interest rate of 1.7% per month.
All outstanding loans for members are fully covered under our risk Management program.
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