Bank introduces new loan product to assist customers

 BANK South Pacific has introduced a new loan product to allow customers to continue to save while repaying a personal loan at the same time.

The bank developed the product known as the Savings Secured Loan to assist customers who struggle to maintain and build their savings while meeting everyday commitments. 

Some people have tried saving for something but ended up using the funds instead for an emergency or unplanned event that needed immediate financial assistance. 

The end result is to start saving all over again. 

With the new loan product, customers borrow against their existing accumulative savings at a 2:1 ratio up to K20,000 maximum value loan. 

BSP said in a statement that “instead of spending those savings on a purchase, you can maintain your savings and earn higher interest while you pay off your loan with flexible repayment rates.

“For example, if you have saved K2,000 you are able to apply for a K4,000 loan. The savings will then be used as collateral to secure the loan during the term of the loan.”

The loan product allows a BSP customer with a regular income (salary/wage earner), including self-employed individuals with a stable source of income who have demonstrated a savings pattern over a period, to borrow against their savings accumulated in a BSP Kundu Account or Plus Saver Account. 

The benefits of the SSL are there is a quick turnaround time, less requirements, fast disbursement, and it comes with a competitive interest rate.