If you are eligible to borrow, it can make more sense to take a credit union loan rather than withdraw your shares. Ordinarily, non-qualifying shares which are pledged may not be withdrawn.
Benefits of borrowing from your credit union
- When you take out a loan, you commit to making regular repayments.By repaying your loan as agreed, you can build a good loan history with us.
- You are expected to continue to save as you repay your loan. Regular savings not only increase your shares, they also increase your borrowing potential.
- Your savings remain intact which means they keep any Life Savings Insurance attached to them.
*Terms and conditions apply.
- Eligible loans enjoy Loan Protection Insurance at no direct cost to you. Loan Protection Insurance clears your loan balance in the event of your death.
*Terms and conditions apply.
- There are no arrangement fees or penalties for large lump sum repayments or early repayment.
Our Loan Policy governs every loan application. Some of the elements of our Loan Policy are:
Minimum age: You must be 18 years old or over to apply for a loan.
Maximum loan: You can apply for a loan of up to $400,000.
Character: Your character – your savings and loan history – is your primary collateral. By saving regularly and repaying each loan as agreed, you increase the likelihood of future loans.
Affordability: You must submit a job letter and supporting salary slip. We may also ask for additional information and documentation to support your application.
Interview: To establish that you can repay each loan you apply for, we will analyse your application and conduct a loan interview if deemed necessary. We require information about your income and expenses.
Loan purpose: Your loan must be for a productive and provident purpose. That means it must enhance the quality of your life.
When an application goes to the Credit Committee
The Credit committee comprises three people, rather than one loan officer, who make the decision on a loan application. The Credit committee meets weekly and members whose applications go forward to the Credit Committee normally hear of the decision within 24 hours.
Reasons why some loan applications are unsuccessful include:
- The member is in arrears or has a poor savings history with us;
- The member cannot afford the loan;
- The shares to loan ratio is going too high or the debt service ratio is too high
Repaying and Saving
Members are encouraged and expected to save (no matter how little) while repaying their loans.
Loans are subject to approval. Terms and conditions apply. If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating which may limit your ability to access credit in the future.
The Light & Power Co-operative Credit Union Limited is regulated by The Financial Services Commission of Barbados.
Should you need access to any one of our loan facilities, for mortgage purposes or regular loans, call one of our Credit Union representatives at 246 431 1400 or email us at email@example.com for details.
How to Apply
- Call or visit our office and make an appointment to speak to a loan officer.
- On the day of the appointment received come in with the required Documents for Loan Interview.
- Providing that all the Documents for Loan Interview have been presented, the loan should be approved within five (5) working days (maximum).
Delinquency affects your relationship with your Credit Union negatively:
- Limits fund for future lending.
- Affects dividend payments.
- Limits ability to develop services and products.
- Affects overall standing among Credit Unions.
Delinquency results from many factors:
- Not making your loan payment on the schedule date.
- Paying less than the amount required.
- Paying irregular lump sums instead of monthly instalments.
- Salary deduction increases not being effected on time.
Actions taken on delinquent loans include:
- Telephone Calls or Visits to the Members, their Guarantors and Co-makers.
- Letters to the Members, their Guarantors and Co-Makers.
- Transfer of Savings.
- Sale of Collateral Pledged – i.e. Motor Vehicle, Property, or Appliances.
- Arbitration – Meeting among all parties, i.e. Credit Union, Member, Guarantors and a Mediator.
- Court Action.
Consequences of delinquency:
- You will be limited to cash secured loans.
- Your Guarantors, if any, stand to lose as they will not be able to access any loans until your loan is settled.
- Your Co-makers will lose their Shares pledged as security for your loan.
- Legal action may be taken against you, your Guarantors and Co-makers.
- Repossession and or sale of items pledged as security.