Every member must subscribe to a minimum share capital.This shall be determined from time to time by the Management Board. This amount can only be withdrawn on resignation and after giving a minimum of ninety (90) days notice in writing of the member’s intention to withdraw.
Members may receive dividend on their shares at the end of the financial year which may be paid into savings account or declared as bonus shares.
The savings balance of any one member shall not exceed 20% of the total savings of the Union or as determined by the Management Board from time to time.
- Amounts exceeding the usual cash on hand of the Union can only be withdrawn after a period determined by the Management Board.
- Savings cannot be withdrawn if they are frozen to guarantee a loan.
- Neither can savings be withdrawn if the member’s indebtedness is greater than the member’s savings.
- Interest on savings shall be determined by the Management Board from time to time.
- The Union shall grant loans to its members.
- Loans shall be granted for any worthwhile purpose. Productive or provident.
- Application for loans must be in writing on the prescribed forms.
- For the first six (6) months of membership, members shall receive loans not exceeding their savings.
- Repayment for facilities above GH¢19,999.00 is thirty-six months and amounts below is twenty four to thirty months. The interest rate on loan is 2.25% per month on the diminishing balance.
- The Management Board shall determine the maximum loan to be granted to a member from time to time, however no individual shall be allowed to borrow more than 20% of the total savings of the union.
- Loans shall be secured by the borrower’s own savings.
- A wage assignment may be used as guarantee to a loan. A wage assignment is a written agreement between the borrower, the employer and Credit Union whereby the employer agreesto reimburse the Credit Union for any amount of the employee’s salary pledged against any unpaid or overdue loan balance.
- Members shall be charged an interest on loans at competitive rates. However, the minimum interest rate to be charged shall be determined from time to time by the credit union movement.
- In case a loan is not repaid according to the terms of the loan bond, the borrower shall be liable to pay the collection expenses. In case a loan is not repaid according to the terms of the loan bond, the borrower may be liable to pay fines not exceeding 10% per annum of the unpaid balance.