NCSL Savings Accounts

NASFUND CONTRIBUTORS SAVINGS & LOAN SOCIETY LTD.
SAVING ACCOUNTS & LENDING GUIDELINES

NASFUND Contributors Savings & Loans Society Ltd (NCSL) offers three saving accounts. Two are specific savings accounts while one is a general savings account. The purpose of these accounts is to:

1.	Encourage members to save regularly
2.	Enable members to obtain larger loans when it is required.

EDUCATION SAVINGS ACCOUNT (ESA) (S1)

·	Minimum savings of K20.00 per deposit (whether paid on , fortnightly or monthly basis)
·	A minimum balance of K50.00 must always remain in the account.
·	Withdrawals are allowed only for education related purposes.
·	Cheques will only be made payable to school, education institutions or supplier of education related goods or services only. No cheques will be payable to a member.
·	Quotations from suppliers of goods and services must be attached with each application.
·	Savings can be used as security against personal loans.

GENERAL SAVINGS ACCOUNT (GSA) (S2)

·	Minimum savings of K 20.00 per deposit (whether paid weekly, fortnightly or monthly)
·	A one-off membership fee of K10.00 is charged
·	Minimum withdrawal of K 200.00 at any one time
·	Members may withdraw up to one half (½ or 50 %) of their net total savings balance in their General Savings Account and only one withdrawal per month is allowed.
·	A member must save for a continuous period of 3 months or more and have a minimum balance of K200.00 before a withdrawal or loan is allowed.
·	Savings can be used as security against personal loans on a ratio of 1:1 or kina for kina basis.

CHRISTMAS SAVINGS ACCOUNT (CSA) (S3)

·	Minimum savings of K15.00 per deposit.
·	Withdrawals are only allowed from November to 31st January of each year.
·	Savings can be used as security for personal loans.

ADDITIONAL SAVINGS

·	Additional savings outside of regular deductions can be accepted from members
·	The member must inform NCSL of the account they wish to deposit the additional saving.
·	If the additional savings is deposited into the General Savings Account for the purpose of obtaining a loan, the loan request shall be considered seven days after making this additional deposit.
·	No cash deposit is allowed. All savings must be paid by cheque or by direct bank deposit.

LOAN ELIGIBILITY

A member is eligible for a loan if he/she: -

(a)	Has had a continuous payroll deduction contribution for a minimum period of three (3) months.
(b)	Has a minimum of K200.00 in his/her general savings account (S2 account).
(c)	Is honest & of good character and has had no prior conviction for fraud or theft
(d)	Has good credit ratings

PURPOSE, RATIOS AND TERMS OF LOAN

The Society can grant loans for a wide variety of reasons including:

Code	Purpose	Ratio	Term
1.	Education Expenses	1:2	3 years
2.	Medical Expenses	1:2	3 years
3.	Funeral Expenses	1:2	3 years
4.	Bride Price/ Wedding commitments	1:1	2 years
5.	Household Electrical items & chattels	1:1	2 years
6.	Holiday / Travel expenses	1:1	2 years
7.	Motor Vehicle Purchase	1:1	2 years
8.	Motor Vehicle Registration & Insurance	1:1	2 years
9.	Outboard Motor & Dinghy Repair	1:1	2 years
10.	Birthday Expenses	1:1	2 years
11.	Investments	1:1	2 years

MAXIMUM LOAN

The maximum loan the Society may grant to a member shall be K20000.00. This loan can be funded either on a loan ratio 1:1 or 1:2 at any one time taking into account member meet the lending requirements of the Society. .

MINIMUM LOAN

The minimum loan that may be granted to a member at is K200.00. A member with a loan balance that exceeds 50 % of their total of general saving account, shall not be allowed any savings withdrawal.

ADDITIONAL LOANS

Additional loans may be granted to a member: -

(a)	If a members' current savings fully secures the aggregate sum of the loan required, and any existing loan balance outstanding on the 1:1ratio.
(b)	No member shall be granted more than one (1) additional loan per month.

No additional loans will be granted to a member if the existing loan balance exceeds their 50 % of the total savings balance.

INTEREST ON LOANS

(a)	Interest is charged at 1% per calendar month on the unpaid balance on all existing and current loan accounts.

STAMP DUTY

(a)	A Stamp Duty of K10.00 is charged on loan agreement for amounts ranging from K4, 001.00 to the maximum of K10, 000.00. Stamp Duty shall be charged at 0.1 % of the loan amount for any loan funded over K10, 000.00.
(b)	The fee is compulsory charged by the Internal Revenue Commission.

LOAN REPAYMENTS

(a)	All loans on a ratio of 1:1 are repayable within 24 months and must strictly adhere to the approved loan repayment schedule.
(b)	All loans on a ratio of 1:2 are repayable within 36 months and must strictly adhere to the approved loan repayment schedule.
(c)	Any interest rate in excess of 1% per month on the unpaid balance may be charged subject to the approval of the Registrar.
(d)	Not withstanding Subsection (c) and (d), a minimum amount of interest of K2.00 per month may be charged.
(e)	Interest may be calculated to the nearest whole month during which a portion of the loan remains unpaid.
(f)	Any interest charged on the loan under Subsection (c) and (d), not repaid for six months after the last date of repayment, will cease to accumulate any additional interest in the member's loan account but shall continue to be charged to the interest suspense account.

SAVINGS TO OFF-SET LOANS

Savings may be transferred to offset loan accounts.

LENDING PRIORITIES

Loan priorities shall be considered on a first come first serve basis and availability of liquid funds.

ADDITIONAL SECURITY

Additional security shall be taken out on any particular loan if it is deemed necessary and in accordance with the Rules of the Society.

For further information please direct all your enquiries to:

Manager
NASFUND Contributors Savings & Loan Society
P.O Box 7732
Boroko, Papua New Guinea
Ph: 325 7166 or 323 0773
Fax: 3256347
Email: operationsncsl@ncsl.com.pg

For lending enquiries email Benard Geita: bgeita@ncsl.com.pg

Or call into our Client Service Centre at Four Mile along the Sir Hubert Murray Highway, Boroko.