Loans
The Loan Policy
The Loan Policy aims to achieve a delicate balance: providing loans that address borrowers’ immediate needs while considering their capacity and willingness to repay. Simultaneously, it safeguards the Credit Union by minimizing undue risk. The policy ensures that borrowed funds are returned with reasonable interest, all while discouraging loan delinquencies.
Loans play a pivotal role in our modern financial landscape. Whether you’re an individual, a business owner, or part of a community, loans serve as powerful tools that can shape economic progress and enhance financial well-being.
Here at WACCOM we have four main categories of loans
- Normal Loans
- Special Loans/Ability to Pay
- Emergency Loans
- Salary Loans
Normal Loans
ensure that members receive loans aligned with their financial standing. A member can borrow up to twice their savings and shares. The interest rate, calculated monthly, stands at 2.5% on the unpaid balance. Repayment is limited to a maximum of 24 months, promoting responsible borrowing. A strong savings pattern is a prerequisite for loan eligibility.
Special Loans/Ability to Pay
Tailored for ambitious members seeking significant capital, this loan goes beyond traditional limits. If your financial aspirations exceed your savings, our Special Loan empowers you to realize large-scale projects, invest in growth, and seize opportunities. With competitive interest rates and flexible terms, we’re committed to fueling your financial journey.
Emergency Loans
Our Emergency Loans cover sudden hospitalization, funeral expenses, accidents, house rents, and school fees. Members are eligible for only one outstanding emergency loan within a twelve-month period. The loan duration is capped at 24 months. The loan amount granted aligns with the agreed-upon schedule deductions.
Group Loans
Just as with the normal loans, a group can borrow up to twice their savings and shares. The interest rate, calculated monthly, stands at 2.5% on the unpaid balance. Repayment is limited to a maximum of 24 months, promoting responsible borrowing. A strong savings pattern is a prerequisite for loan eligibility.
Salary Loans
Our Salary Loans are designed for those who exclusively channel their salary through WACCOM. Key features include:
- Eligibility: Members must receive their salary directly from WACCOM.
- Loan Limit: Only one outstanding salary loan is allowed at any given time. Please contact us for further information.