The need for reform of our loan policy is not only overdue but urgently necessary.This measure will strengthen our society as a going concern, failure to reform NOW will ultimately lead to unbearable pressure on our great society that can eventually leads to liquidation of this great society.
BENEFITS OF THE NEW POLICY
1. COLLECTING THE ACTUAL LOAN:
The need for members to collect the actual amount requested for is real.Therefore No more upfront loan interest deduction. The pressure on the economy is not helping us as a civil servant hence the time to rise to the challenge is now.This will enable cooperators avail themselves of the full values of the loan applied for.
The new policy is geared to accommodate the WEAK,the STRONG and the BOLD. Members for the first time is at liberty to choose repayment plan that best suits them. The Adage fingers are not equal,is very conspicuous in the pressure loan repayment bears on our members. Hence the need to be flexible is crucial.
3. REPAYMENT SCHEDULE:
Characteristics of a loan facility include the Start and End date policy. There is need more than ever before to have a START and End Date for all loans. This will enable IPPIS to be able to make correct deductions and not over deduct or under deduct our cooperators.
4.BLOCK LEAKAGES/LOOP HOLES
It will surprise you to hear that some unscrupulous members borrow at cheap rate from the society and re-lend at higher rate to outsiders. After lending to outsider they still do not pay back to the society as st when due.These actions eventually starved the society of necessary funds while these undeserving members take negative advantages of the society and us all.
The new loan policy will be
- SHORT TERM 6 Months @ 5%
- MEDIUM TERM 12 Months @8%
- LONG TERM 18 Months @ 12%