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Effective Commencement Date
1st April 2001
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Interest Rate
The current interest
rate with effect from 1st July 2006 is 4% flat per annum. The Co-operative
reserves the right to revise the interest rates of the Study Loan as
dictated by factors in the market
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Admin Levy
Administrative levy
will be imposed for each approved application of loan
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Repayment Period
Repayment period ranges from 6 to 36 months. The sum to be
repaid will be deducted monthly from the member’s salary. Two advance
instalments will be deducted up front from the loan amount.
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Loan Amount
The maximum loan to be granted to
each member would not exceed $15,000 or the amount of the total course fees
whichever is lesser. The Co-operative reserves the right to approve the
loan or reject the loan. Members will be informed of the outcome by the
staff upon the receipt of the loan application by the Co-operative.
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Group Credit Policy
The Co-operative
will purchase a group credit policy to insure the Co-operative against
death and total permanent disability of members for any member taking out a
loan. This will be at the Co-operative’s expense. The sum insured
will be based on the monthly outstanding loan with the Co-operative.
The exclusions are:
·
Suicide while sane or insane, within first year from
Date of Entry
·
Total Permanent Disability caused directly or
indirectly, wholly or partly, by self-destruction or any attempt there at within
12 months from the Entry Date, while sane or insane.
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In-house Insurance Premium Rates
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Repayment Period
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Premium Rates
w.e.f 1st January 2002
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Not exceeding 12 months
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1.4% of loan
amount
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More than 12 months but not exceeding 24months
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2.1% of loan
amount
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More than 24 months but not exceeding 36 months
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2.8% of loan
amount
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·
The in-house insurance premium will be deducted up front
from the loan amount.
·
There will be no refund on the in-house insurance
premium even in the event of early redemption of loan.
·
The Co-operative reserves the right to adjust the rates without
prior notice to members after taking into consideration the incidence of
loan defaults.
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Eligibility
All ordinary members with 3 years of
membership are welcome to apply for study loans under this Scheme, provided
that the total deductions from the member’s pay packet do not exceed
50% of the gross salary. The following documents must be furnished a the
time of loan application:
- Latest Original Payslip.
The Co-operative has to ensure that total deductions inclusive of the
instalment from the new loan should not exceed 50% of gross pay. This
is the guideline given by the Ministry of Finance which the
Co-operative has to adhere to. Hence, the payslip is an important
document for the Co-operative to determine on the quantum of loan to
be given to a member as well as the repayment period for the loan.
- Invoice or letter of Demand
for Course Fee. The Co-operative would issue the cheque to the educational
institute as indicated.
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Monthly Budget
The Co-operative
would allocate a budget of $50,000 monthly for this scheme under first-come,
first-served basis. The amount not utilised will be transferred to the
following month.
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