1.0             GENERAL RULES

1.1     BELOW ARE GENERAL RULES GOVERNING ANY OF THE SOCIETY’S LOAN SCHEMES

Except otherwise explicitly stated on the particular loan scheme, the following conditions shall apply.

  1. MC may at their discretion approve the rollover of an outstanding loan provided all accrued interests are paid.
  2. Applicant must present to The Society a minimum of two acceptable sureties who must be members of The Society.
  3. A member may surety a new applicant provided that the previous loan he/she stood surety has been fully repaid.
  4. Any beneficiary that defaults on the repayment of loan shall be charged a 1% flat rate per month on the balance of principal for each month of default in addition to the existing interest rate.
  5. Disbursement of loans to members shall be on availability of loanable funds and on “first come first serve” basis.
  6. All loan disbursements to members shall be on crossed cheque or direct credit to the member’s bank account.
  7. Where an applicant elects for an open cheque a flat bank charge of two thousand (N2,000:00) or 1% of the amount whichever that is higher shall be charged.
  8. All loans must be insured and the insurance premium deducted at source prior to disbursement.
  9. Applicant is responsible for the accuracy of all information supplied by him / her.
  10. loan shall be applied for purpose other than that for which it was taken. A member who applies or uses a loan for a purpose other than that for which it was taken shall be liable to any reasonable sanction that MC may impose.
  11. Any falsification of information shall be dealt in accordance with The Society’s Bye-laws, Rules and Regulations.

1.2         LOAN SCHEMES

The following are the various loan schemes being administered by The Society.

1.2.1      BUSINESS IMPROVEMENT LOAN

  1. An applicant must have an existing business which has been in operation for a period of not less than twenty four calendar months.
  2. An applicant must be a registered member of The Society for a period of not less than three months.
  3. A minimum of three months thrift savings must have been made by an applicant prior to application for loan.
  4. Maximum loan available shall be 500% (i.e. five times) of applicant’s unencumbered savings (this shall exclude share capital holding), subject to a maximum of One Million Naira (N 1,000,000.00).
  5. Loan tenor shall be for a period of not more than twelve (12) months.
  6. Interest rate applicable shall be 1.5% flat per month.
  7. No member shall have more than one Business Improvement Loan running for him/her at any particular time.

1.2.2      CONSUMER LOAN

  1. An applicant must be a registered member of the society for a period of not less than three months.
  2. A minimum of three months thrift savings must have been made by an applicant prior to application for loan.
  3. Maximum loan available shall be 150% (i.e. 1.5 times) of applicant’s unencumbered savings (this shall exclude share capital holding), subject to a maximum of Five Hundred Thousand Naira (N500,000.00).
  4. Loan tenor shall be for a period of not more than twelve (12) months.
  5. Interest rate applicable shall be 1.5% flat per month.
  6. No member shall have more than one Consumer Loan running for him/her at any particular time.

2.         BAD Loan

Any loan that can no longer be serviced by the beneficiary in accordance with the agreed schedule shall be regarded as a bad loan. Such situation may arise as a result of any or combination of the following situations.

  1. Incapacitation of beneficiary due to ill health, severe accident or act of God etc.
  2. Bankruptcy
  3. Death of a beneficiary.
  4. Or any other condition that made the loan unserviceable as agreed by simple majority of MC members

 

2.1            BAD LOAN RECOVERY

If a loan becomes bad, the following procedure shall be adopted to recover the outstanding principal and any applicable interest.

Upon death of a beneficiary, The Society shall file insurance claim from the insurance company for liquidation, otherwise the following procedure shall be adopted to recover the loan.

  1. The balance of the principal and applicable interest shall be recovered from the member’s cumulative savings, share capital, Interest and dividends due to the member.
  2. The balance of the principal and applicable interest shall be recovered from the Sureties’ cumulative monthly savings, share capital, interest and dividends due to the sureties in equal proportion to each surety.
  3. In an event of (i) or (ii) above not being able to pay-off the loan, The Society shall take any legal means possible to recover the loan. In such circumstance the beneficiary and his/her Sureties shall be required to pay all expenses incurred by The Society while recovering the loan.

 

Standard Loan Scheme-Accelerated

  1. Only members who have contributed to the cooperative society for six (6) consecutive months shall qualify for this loan package.
  2. 1st time loan applications shall be treated on a first-come-first-served basis subject to availability of funds.
  3. 2nd time loan applications in one financial year shall always queue behind a member applying for the first loan in the same financial year irrespective of which loan application is received first.
  4. Maximum loan amount accessible by any member shall be limited to 200% of his/her total unencumbered contribution as at the end of the month prior to the month in which application is made.
  5. Interest shall be deducted upfront at 8% Flat.
  6. Loan repayment shall be over a maximum period of 24 calendar months and repayment will start from end of the month the loan was disbursed.
  7. Loan repayment shall be by direct deposit into the IFEDACOOP’s account throughout the agreed repayment period of the loan. However, an indebted member shall be at liberty to liquidate the outstanding balance on his/her loan account in full at any time via direct payment/transfer into the Cooperative’s bank account.
  8. Application for the loan is strictly via secure log in to the cooperative portal.
  9. All applicants shall be notified of the success or otherwise of their applications within 48 hours.
  10. All loan disbursements shall be made via electronic bank transfer to the applicant’s nominated account no later than 72 hours after approval.
  11. Members shall qualify to apply for a new loan provided that a minimum period of one month has lapsed since the liquidation of a previous loan.
  12. Loan application(s) amount less than or equal to a members total contribution do not require a guarantor.
  13. Loan applications which exceed members total contribution shall be supported by a number of guarantors, who must be financial members of the Society, as stipulated below:
  14. Loan amount equal to or less than N1,000,000 [2 guarantors]
  15. One (1) guarantor can be accepted only if the guarantor contribution can cover the excess on the loan amount requested.
  16. Any member that is indebted at the point of filing to leave the cooperative or being dismissed from the cooperative shall be required to settle the outstanding balance of his/her loan immediately. The accumulated contribution of such a member may also be appropriated towards the settlement of the loan.
  17. Where an indebted member leaves the cooperative without settling his/her outstanding loans and is not able to reach an acceptable settlement agreement with the credit committee, the obligation of immediate settlement shall fall on the loan guarantors jointly and severally.
  18. No member shall be allowed to guarantee more than 2 members’ loans/applications for loan at any given time.
  19. No member shall be allowed to guarantee his/her own guarantor on an existing loan/application for loan.

The financial year of the Cooperative runs from January 1st to December 31st of every year.

  1. Emergency Loan Scheme

Application Guidelines

  1. Applicants must be fully registered members of the Cooperative.
  2. Applicants must have made at least one month’s contribution to the Cooperative.
  3. Maximum loan amount is 2x times (200%) of the sum of total contribution made to date subject to a limit of N300,000 (three hundred thousand Naira only).
  4. Interest rate is 5% flat and will be deducted upfront from the loan amount.
  5. Repayment period is limited to a maximum of 3 months and will be by direct deduction from applicant’s salary.
  6. Deduction from salary on account of the loan must not exceed 1/3 (one third) of the applicant’s take-home pay.
  7. The applicant’s monthly contribution during the currency of the loan must not be less than their amount of monthly contribution in the month preceding the month of the application.
  8. Where an applicant applies for an amount greater than the cumulative amount contributed to date, One (1) guarantor meeting the following conditions must be provided: a. He/she must be a fully registered member of the Cooperative b. He/she must have a cumulative contribution that is at least equal to the amount by which the applicant’s request exceeds their cumulative contribution.
  9. The deadline for loan applications for the month will be the 20th of each month.
  10. Disbursement will take place in the first week of every month.
  11. Loan applications shall be treated on a first-come-first-served basis, subject to a limit to be determined by the Management Committee on a monthly basis.

LOAN TOP-UP GUIDELINES

  1. Applicant must have paid off 25% of the initial loan
  2. Applicant must have the financial capacity to service the proposed loan
  3. Proposed monthly repayment must align with the maximum salary deductible
  4. Loan interest will be taken upfront before balance paid out to member

Example: Sheriff Akintunde has an outstanding loan balance of N40,000 and wants a loan top up of N100,000 N100,000 – N40,000 = N60,000 (amount due to member after closing the old loan) Loan interest due on the loan is N60,000/10 = N6,000 Amount due to member is N60,000 – N6,000 = N54,000 after closing the existing loan.

3. UNDERTAKING

As a beneficiary of The Society’s loan under this Procedure and as may be amended from time to time, I undertake to abide by all rules and regulations contain therein. I shall not be relieved of this entire obligation until the loan and all its interests are fully recovered by The Society. I declare that all information supplied by me during the course of processing my application is correct to the best of my knowledge and shall be held liable for any misinformation at any time during the loan tenor.

24hr Hotline

08111111199

MISSION

Our mission is to empower our members; improving their quality of life by providing the widest possible range of rewarding investments and services.

VISION

Our Vision is to be a leading cooperative in Ekiti state providing financial and economic rewarding services.

WHO WE ARE

The “IFEDACOOP” is an independent association of individuals united voluntarily to meet their common economic and social needs and aspirations through a jointly-owned and democratically controlled enterprise.