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NCSL FACTS

WELCOME TO THE NASFUND CONTRIBUTORS SAVINGS & LOAN SOCIETY - THE NEW AGE OF SAVINGS in Papua New Guinea

Background
The NASFUND Contributors Savings & Loan Society Ltd (“NCSL”) was established in October 2003 as a result of changes made to the Superannuation Act, which disallowed voluntary education contributions to be part of superannuation savings. Through the Savings & Loan vehicle we continue to provide a savings facility for not only education / school fee expenses but for other short term financial commitments as well.

What services does the NCSL provide?
The NCSL offers three saving accounts. The accounts are:

Education Savings

General (Primary) Savings
Christmas Savings

What are the minimum saving amounts for each account?

Education savings minimum deposit is K20.00
General savings minimum deposit is K20.00
Christmas savings minimum deposit is K15.00

These deposits can be paid on a fortnightly or monthly basis.

Is membership compulsory?

No. Savings with NCSL is not compulsory.
It is a voluntary savings scheme that gives you flexibility to access your savings to fulfil your urgent financial commitments such as school fees, bride price, funeral expenses and so forth.

Who is eligible to join as a member of the NCSL?

Any person who is a contributing member towards superannuation with NASFUND Ltd or the Aon Master Trust and is not an active financial member of another Savings & Loan Society.

If I am already a member of another Savings & Loan Society can I still join the NCSL?
No.
The Registrar of Savings & Loans disallows members of joining more than one society. If you wish you may cease your membership with another society and transfer your savings to NCSL.

Can I transfer my superannuation saving to my NCSL account?
No. Your superannuation savings are totally separate and independent of your NCSL savings. You cannot transfer your superannuation funds to NCSL while you are an active member of NASFUND.

Does NCSL offer loans?
Yes. NCSL has two lending ratios as approved by the Register of Savings & Loan Societies.

1. Lending Ratio of 1:1
For the 1:1 lending ratio, if you have K1000.00 in your general savings you are allowed to borrow a maximum of K1000.00.

This is to safeguard you and the Society in the event you are not able to repay your loan. Your savings is your security.

2. Lending ratio of 1:2
For the lending ratio 1:2, if you have K1000.00 you are allowed to borrow up to a maximum of K2000.00.

The security against this lending is a written undertaking produced by a member’s employer to pay to NCSL the member’s “long service leave” or “severance entitlements” in the event they leave employment or is not able to repay the loan on the ratio 1:2.

What is the loan interest rate?
The interest rate charged is 1% per month on the unpaid or reduced balance of a loan. Loans plus interest must be paid within 36 months under 1:1 and 1:2 ratios.

Does the NCSL pay interest on Savings?
Yes. The society is required to pay interest on savings based on the surplus (profit) made each year.

What are the rules for withdrawing savings if I am not taking a loan?

General savings account

Members may withdraw up to 50 % of their net total savings balance in their General Savings Account;
The minimum amount that a member shall withdraw from the General Savings Account is K200.00. No amount less than K200.00 shall be permitted for withdrawal;
Only one withdrawal per month is allowed;
A member with a loan balance that exceeds 50 % of their total of general saving account, shall not be allowed any savings withdrawal;
A refund of savings or a full exit shall fall due, 3 months after the last contribution. An exit fee of K20.00 will be charged.

Education savings account

A minimum balance of K50 must always remain in the account;
Withdrawals are allowed only for education related purposes;
Cheques will only be made payable to school, education institution or supplier of education related goods or services. No cheques will be payable directly to the member;
Quotations from supplier of goods and services must be attached with each application;

Christmas savings account

Withdrawals are only allowed in November and December of each year;
A minimum balance of K20.00 must remain always in the account

How will I know my money is safe?
We give you peace of mind and comfort with the unique way in which we will manage and administer the affairs and operations of the society. All key administration function is outsourced to a professional service provider.

Pacific Wealth Management (PWM) LTD provides the back office administration (allocating of member contributions and processing of loan and withdrawals).

In addition the external audit is carried out by KPMG a reputable and professional accounting firm.

Commitment to good governance, prudential management and customer- oriented service is what we are known to deliver.
For further information please direct all your enquiries to:

The General Manager,
NASFUND Contributors Savings & Loan Society,
P.O Box 7732,
BOROKO, Papua New Guinea

Ph: 321832
Fax: 325 2684
Email: bkondolo@ncsl.com.pg

For lending enquiries you can contact our Team Leader Operations & Senior Loans Officer Mr. Bernard Geita on email: bgeita@ncsl.com.pg