General Policy (subject to change by the Board of Directors) Loans  may  be  granted  only  to  members  or  registered co-operative members of the Credit Union.

All loans shall be based on the following:

i. The member is of responsible character.

ii. All loans are made for a provident or productive purpose.

iii. The member has the capacity to repay the loan.

iv. The member can provide the collateral (security) required .

Credit Committee

The Credit Committee has the responsibility for approving all loans in keeping with the Credit Union's Loans Policy. It's rules and statues are subject to restrictions set forth by the Board of Directors from time to time.

Policy Guidelines

Minimum Savings Requirement: A member is expected to have a minimum of 5% of the total amount of loan requested as savings in the Society . For motor vehicles, 10% savings is required. This does not apply to loans covered by savings and deposits. A deficiency in the minimum savings requirement can be made up by either increasing compulsory savings or bringing in new funds.

Non-resident members must have a minimum of 15% of the loan request as savings in the society.

Security for Loans: RCCU loans must be secured. Click here for the items accepted by the Credit Union as security on loans.

Security for Loans to overseas members: Members residing overseas who are applying for  a loan to purchase real estate overseas will need to offer  locally owned and registered properties as collateral.

Real Estate Used as Security: The value of real estate accepted as security will be at a maximum of 80% of the market value of house & land and 75% for land only.

Period of Loan: Each loan category has a specific repayment period. Periods range from 5 years for domestic loans to 30 years for mortgage (home) loans.

Character Loans can be funded up to $10,000 in excess of the member's share saving, on his/her signature.

Cash-Secured Loans: Members can receive cash-secured Loans of any amount that he/she would be entitled to withdraw as savings. The interest rate on these loans is 1% below the normal rate stipulated for this loan category with the exception of mortgages and overdrafts.

Repayment Schedule: All loans must have a specific repayment schedule clearly related to the borrower's income and ability to pay.

Assignment of Wages/Salary: Where possible, loan repayment should be arranged through the assignment of wages or salary. This is not regarded as security but as a collection tool.

Legal and Medical Costs: All legal fees and medical costs related to the granting of a loan are to be met by the member, but may be added to the loan amount.

Compulsory Savings: To assist members in learning to save and improve their financial condition, member borrowers will be required to contribute at least 5% of the loan installment towards their savings. This does not apply to cash-secured loans.

Extended Loan Repayment Periods: Members can qualify for extended loan repayment periods up to 96 months on all loans with the exception of education and mortgage loans.

Promissory Note: The Promissory Note must be completed, signed and witnessed prior to the disbursement of funds. Implications of the Note shall be explained to the member borrower prior to signing.

Loan Approval Levels for Management:
The following loan approval levels are in place to expedite the daily processing of members' loans

Problems of Repayment: Should a member experience difficulty in meeting loan repayment, the Credit Union should be informed without delay. Every effort shall be made to review the problem for working out a convenient repayment schedule.

Penalty for Closing of Loans: A fee of one (1) month's interest will be applied to balances of all loans closed before the due date through a take-over by another financial institution.

Interest Rate: The Board of Directors may review the rate of interest from time to time.

Member Loan Limit: In no case will the amount loaned to a single member exceed one percent (1%) of the share capital and surplus of the Society

Limited Funds: When the funds of the society are limited, the Board of Directors may reduce the maximum loan limit and/or shorten the period of repayment.

Confidentiality of Transactions: All transactions with members of the Society shall be kept confidential.