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 are to:

 

1. Encourage members to save regularly.
2. Enable members to obtain a loan when it is required.

EDUCATION SAVINGS ACCOUNT (S1)

 

• Minimum savings of K20.00 per deposit (whether paid on a 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 (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 50 % of their net total savings balance in their General Savings Account.
• 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 1:2 or Kina for Two Kina basis.

CHRISTMAS SAVINGS ACCOUNT (S3)

• Minimum savings of K15.00 per deposit;
• Withdrawals are only allowed from November and December 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 savings into;
• 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 deposits must be paid by cheque or by direct bank deposit.

LOAN ELIGIBILITY

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

 

1. Has had a continuous payroll deduction contribution for a minimum period of three (3) months;
2. Has a minimum of K200.00 in his/her general savings account (S2 account);
3. Is honest & of good character and has had no prior conviction for fraud or theft;
4. 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	Min Term	Max Term
1.	Education Expenses	1:1 or 1:2	1 month	36 months
2.	Medical Expenses	1:1 or 1:2	1 month	36 months
3.	Funeral Expenses	1:1 or 1:2	1 month	36 months
4.	Bride Price/ Wedding commitments	1:1 or 1:2	1 month	36 months
5.	Household Electrical items & chattels	1:1 or 1:2	1 month	36 months
6.	Holiday / Travel expenses	1:1 or 1:2	1 month	36 months
7.	Motor Vehicle Purchase	1:1 or 1:2	1 month	36 months
8.	Motor Vehicle Registration & Insurance	1:1 or 1:2	1 month	36 months
9.	Outboard Motor & Dinghy Repair	1:1 or 1:2	1 month	36 months
10.	Birthday Expenses	1:1 or 1:2	1 month	36 months
11.	Investments	1:1 or 1:2	1 month	36 months

 

MINIMUM & MAXIMUM LOANS

The minimum loan the Society grants to a member 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.

The maximum loan the Society grants to a member on the 1:2 lending ratio is K20, 000.00. This loan can be funded at any one time taking into account that member meets the lending requirements of the Society.

The maximum loan the Society grants to a member on the 1:1 lending ratio is unlimited. Savings can be used as security against personal loans.

 

A member may obtain a loan exceeding K20, 000.00 on 1:2 ratio for school fees, funerals and medical expenses only subject to NCSL Board approval.

 

ADDITIONAL LOANS

Additional loans may be granted to a member:

• If a members’ total current savings fully secures the total sum of the loan required;
• 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

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

STAMP DUTY

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

LOAN REPAYMENTS

• All 1:1 loans & 1:2 loans are repayable within 36 months and must strictly adhere to the approved loan repayment schedule;
• Any interest rate in access of 1% per month on the unpaid balance may be charged subject to the approval of the Registrar;

SAVINGS TO OFF-SET LOANS

Savings may be transferred to offset loan accounts, if the loan is in default.

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 NCSL Rules.

For further information please direct all your enquiries to:

The General Manager,
 NASFUND Contributors Savings & Loan Society LTD,
 P.O Box 7732,
 BOROKO, Papua New Guinea
 Ph: 325 7166 or 323 0773
 Fax: 325 2684
 Email: operationsncsl@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

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