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Frequently Asked Questions

 

Category: General
  What are the requirements for membership in a credit union?
  How old must I be to become a credit union member ?
  How can I become a credit union member ?
  Who owns a credit union ?
  How soon after becoming a credit union member can I obtain a loan ?
  Why must I give security collateral when I want a loan ?
  Can I withdraw my savings while I am repaying my Loan
  What happens if I die before my loan is repaid ?
  When are dividends on shares declared ?


Category: General

What are the requirements for membership in a credit union?

Applicants must fall within the common bond of association of the credit union, pay the required entrance fee and purchase a minimum of shares.



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How old must I be to become a credit union member ?

The Co-operative Societies Law permits deposits to be received from children under sixteen (16) years of age. However, the Law limits membership to those who are sixteen (16) years and over.

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How can I become a credit union member ?

You may become a member by completing a membership application and nomination form, which have to be approved by the credit union.

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Who owns a credit union ?

The credit union is owned by all its members.



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How soon after becoming a credit union member can I obtain a loan ?

This is determined by the lending policy of the credit union of which you are a member.

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Why must I give security collateral when I want a loan ?

Collateral is required only when you are borrowing more than you have in shares or savings in your credit union. It is used as security against delinquency. Remember when you borrow more than you have in your account, you are really using other members' savings. The credit union has to secure these savings.

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Can I withdraw my savings while I am repaying my Loan

Only savings that have not been used as security for a loan can be withdrawn. Members are not allowed to withdraw shares if he/she owes money to the credit union or is the guarantor/co-maker of any loan in excess of savings.

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What happens if I die before my loan is repaid ?

Your loans up to an amount, which is determined by your credit union, are insured, therefore if you die before you have repaid your loan it will be repaid by the insurance, however conditions apply.

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When are dividends on shares declared ?

Dividends on shares are declared at the credit union's Annual General Meeting (AGM) of each financial year.

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Thrifty Tips
 
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Credit unions have a tradition of providing member education through the hosting of seminars on topics ranging from buying a car to preparing for retirement.
 
 
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