4pc interest rate for members

The National Business

MEMBERS of the Nambawan Savings and Loans Society (NSLS) will receive a 4 per cent crediting rate into their savings accounts for the 2020 financial year, says chief executive officer John Solok.
This comes after the NSLS recorded a K6.7 million revenue last year – representing a 21 per cent increase from 2019 – with a K2.38 million net profit.
Solok said the 4 per cent crediting rate represented a 3 per cent increase from the normal 1 per cent credited to members annually.
It is due to the growth in revenue.
Other highlights includes:

  • A 24 per cent growth in net asset worth K12.2 million;
  • A highest membership growth of 26,633 – a 20.1 per cent growth; and,
  • INCREASE in loans by 24 per cent.

Solok said revenue increased because the NSLS looked at other revenue streams apart from the traditional interest rates on loans to customers.
“One of the things about savings and loans is about members helping members,” Solok said.
“We don’t do huge charges. If you go to us on a reducing balance, you have a 1 per cent interest on your loan which is by financial standards the cheapest in the market.
“It’s all about having the cash to help members without applying too much stress on them on their repayments.
“We those access cash, we look at growing their wealth so we look at wise investments on short money markets. Recently, our strategic move towards buying blue cheap investments as in Kina Bank.
“So our growth now is now just dependent on interest rates but growing other investments to make sure that we are growing at a high return on investment.
“We have started that process last year and that has actually allowed us to have a good revenue growth.”