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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.

Members are encouraged to save as much as they can afford on a regular basis. The savings scheme is administered as follows:

• There are 2 types of savings plan – High-Yield Term Deposit and Regular Thrift Savings;
• A member can do a term deposit (one-time cash lodgement) at an unmatched interest rate of 21% per annum and a minimum tenure of one year. This deposit can be increased at any time or rolled over at the end of tenure with applicable interest rate. This deposit cannot be withdrawn/liquidated before expiration of tenure, except the member is ready to lose accrued interest. If this happens, only the amount deposited would be paid to the member. All funds committed for term deposit are invested in high-yield markets;
• Members shall be encouraged to make regular thrift savings, minimum of which shall not be below N5,000 (Five Thousand Naira) per month;
• The amount of the regular thrift savings can be changed after a specified period, and also in the case that the member took a loan where a reduction in thrift savings can be accommodated;
• Members shall only be entitled to dividends if they participate in Regular Thrift Savings;
• Dividends on regular thrift savings shall be paid at the end of every financial year. The rate of dividends payable shall be determined after the surplus has been ascertained and necessary reserves created.