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Effective Commencement Date
1st April 2010
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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 60 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 loan amount to be granted will
depend on whether the member’s salary can take in the monthly deduction.
The monthly instalment should not exceed 50% of the member’s gross salary.
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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
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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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More than 36 months but
not exceeding 48 months
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3.5% of loan amount
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More than 48 months but
not exceeding 60 months
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4.8% of loan amount
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The in-house insurance premium will be
deducted up front from the loan amount.
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There will be no refund on the in-house
insurance premium even in the event of early redemption of loan.
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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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