The following conditions govern the loan scheme:
- A member shall be eligible for a loan after six (6) months of active membership – must have made regular thrift savings for a period not less than six (6) months as at the time of application for loan;
- Loans may be granted to members subject to availability of funds and shall be for purposes, which in the opinion of the Management Committee are productive or necessary, and in the best interest of the borrower;
- Interest on any loan to members shall be charged at a rate determined by the Management Committee but shall at all times be less than the benchmark interest rate set by the Central Bank of Nigeria (CBN);
- Every borrower shall execute a bond and provide two (2) guarantors/sureties who must be members of the cooperative. Defaulting on loan repayment would be difficult given the structure in place. In the case it happens, regular thrift savings account of defaulter and guarantors shall be debited to repay the loan + some penalty charges;
- Maximum credit limit (loan amount) shall be twice (x2) the total regular thrift savings of the applicant as at the time of the application. Loan repayments shall be automatically deducted from the member’s online cooperative account (e-wallet) every month;
- The loan bond together with guarantors/sureties’ approval is managed through an automated request-and-approval process.