NCSL’s recently launched new loan insurance product secures loan repayments for 1:2 loans in the event that the member gets involved in an accident that may result in the loss of employment or death.
This insurance cover is applicable to members who have been contributing to NCSL for more than 3 months and are able to satisfy the credit assessment criteria for approval of a loan.
Loan Insurance Product protects members and the Society from potential loss if loans are insured.
NCSL in partnership with Capital Life Insurance will work together to ensure members loan commitments are met during unforeseen medical situations or death.
For instance; if a member was involved in an accident and requires time to recover and is put off the payroll, the loan insurance cover will assist with meeting the loan repayments or in the case of untimely death, the loan insurance cover will enable full clearance of the loan.
Loan insurance will not be considered a primary requisite for approval of any loan.
Loan insurance applies to approved 1:2 loans and normal loan processing fee of K25.00 applies. NCSL’s normal interest rate of 12% per annum or the prevailing loan interest rate at the time of the loan approval will also be applicable.
Upon loan approval, the premium for the insurance will be added to the loan amount thereby allowing the member to only have one loan repayment amount.
The cost of loan insurance premium varies depending on the amount borrowed and the term given to repay the loan.
For example: a loan of no more than K1,000.00 over a 6 month repayment term – will attract a premium of K5.40 while a loan between K9,000.000 and K10,000.00 at a term of 12 months will attract a premium of K108.00.
This insurance products is aimed at assisting the member in their time of need during an accident and also will relieve pressure on the loved ones in the untimely event of death.
This insurance product was approved by the Bank of Papua New Guinea in September 2016 and was launched on 1st November 2016.
Click here to download the Loan Insurance table.