Savings society revises loan process to improve services

In its efforts to prudently manage members’ contributions and streamline processes to meet service standards, the Nasfund Contributors Savings and Loans Society (NCSL) has revised and automated its 1:2 loan process.
NCSL, in a statement, said this was expected to lower the level of delinquent loans.
Lending manager Bernard Geita said every loan write-off had an adverse impact on the profitability of the society, and, therefore, NCSL’s ability to pay higher returns to members.
Geita said system changes and upgrades were made to bring automation into the daily NCSL processes.
Hence, the operating system was able to either automatically approve or systematically decline a loan based on the society’s credit assessment criteria.
He clarified that members who applied online will would receive the automated “loan decline” message if the total savings balance in addition to the member’s long service leave entitlement is less than the total loan amount.
Geita said that this automation was also necessary in light of the company’s plans to introduce additional lending products to its 123,000 members.
“The society have now commenced delisting employers of the defaulting members due to their failure to observe their commitments under the 1:2 loan ratio.”