Loans are granted to members for productive and provident purposes. Members who have saved for Six (6) months or more with KAMCCU may be granted Loans within or above savings. The maximum loans that can be granted to a member is twice member's Savings. Maximum loan repayment period is Three (3) years.
Purpose of loans Include:
1. Provident
Food, school fees, weddings, funerals, housing, transport, others.
2. Productive
a. Agriculture
Fertilizer, livestock/poultry, farming equipment, seeds, others
b. Business
Tailoring, maize mill, business capital, liquidity support, others
Members can obtain Loan application forms from the office, complete and return same with a valid ID card (Voter's ID, Drivers Licence, National Identification card, Passport). Loans above member's savings must be vetted by the Loans Committee, which meets weekly to consider Loans and approve or disapprove or defer. Members applying for Loans from Seven Thousand Ghana Cedis (GHS 7,000.00) and above must meet the Committee personally for further verification before approval is given.
Loans are insured by the borrower with the Credit Union against the risk of Death and Permanent disability under the Credit Unions Loan Protection Plan (LPP). The entire loan is covered over the repayment period. Whatever that has been re-paid by the borrower at the time of the risk becomes a benefit to the member in time of Permanent disability or to the next of kin after death of a member.
Interest charged on Loans is 3% per month reducing balance method which makes up to 19.5% per annum or 2% per month for loans within savings. Example, when a member takes GHS 1,000.00 he/she will pay an interest of GHS 195.00 over a repayment period of 12 months to be repaid monthly.
