NCSL new feature offers secure loan repayments

NASFUND Contributors Savings and Loan Society (NCSL) has added a new feature to its 1:2 loan offering to ensure loan repayments are secure in the event that a member is unable to continue loan repayments.
The society said in a statement that this insurance cover was applicable to members who had been contributing to NCSL for more than three months and were able to satisfy the credit assessment criteria for approval of a 1:2 loan.
Lending manager Bernard Geita said the loan insurance product protected members and the society from potential loss.
“Loan insurance benefits the members in the event that a member gets involved in an accident that may result in the loss of employment or death,” he said.
“Their loan will be fully repaid under this loan insurance policy.”
Geita said if a member is put off the payroll for a reason such as medical reasons, the loan insurance cover would assist with meeting the loan repayments and in the case of untimely death, the insurance would cover clearance of the loan.
The loan insurance would not be considered a primary requisite for approval of any loan.
The loan insurance applies to all approved 1:2 loans.
Nasfund Contributors Savings and Loan Society normal interest rate of 12 per cent per annum or the prevailing loan interest rate at the time of the loan approval would also be applicable.
Geita said the cost of loan insurance premium varied depending on the amount borrowed and the term given to repay the loan.
As an example, a loan of no more than K1,000 over a six month repayment term would attract a premium of K5.40 while a loan between K9,000 and K10,000 at a term of 12 months would attract a premium of K108.