Dennise Williams, Staff ReporterNow, to save you time, headache and perhaps a few dollars, More Money interviewed Cleon Haughton (CH), processing manager at City Of Kingston Cooperative Credit Union (COK), to get an idea of the best way to approach your lender.
More Money (MM): Can you just walk in or is it best to make an appointment?
Cleon Haughton: Members can simply walk in and speak with one of our member services officers to discuss their loans.
MM: What are the criteria used to judge suitable candidates?
CH: To judge suitable candidates, their credit history with COK is considered. Also taken into consi-deration are credit card history as well as the various monthly salary deductions for example National Housing Trust mortgage payments and savings with other financial institutions just for verification.
MM: What sort of
documentation should you bring for a personal loan, car loan, business loan, home loan?
CH: Below is a copy of our loan checklist, with details of the documentation required for each type of loan.
PROOF OF INCOME
Job letter stating salary, position, length of employment and last two months payslips
If self-employed: Income and Expenditure statement prepared by a certified chartered accountant.
types of COLLATERAL
a) Qualifying shares.
b) Real estate.
c) Motor Vehicle (8 years or younger).
d) Life insurance policy (80 per cent of cash surrender value).
e) Cash at another financial. institution.
f) Guarantor.
g) Co-maker.
CONTACT PERSONS
Name, home and work addresses and telephone numbers of two relatives and two references.
One passport-size picture.
FEES
Fees assessed on collateral used:
This is based on what
is used as collateral.
If using cash held at COK as security, we charge 0.75 per cent of loan disbursed plus general consumption tax of 16.5 per cent.
If using cash from other institutions as security, we charge one per cent of loan disbursed plus GCT.
If using property, the fee is $2,000.00 plus GCT for title search and 3.5 per cent of loan plus GCT. Also, property being used as security must be insured.
If using a motor vehicle, we charge processing fee of 1.25 per cent of loan plus GCT. Note, the motor vehicle you wish to purchase will serve as collateral.
Fees assessed after approval.
Commitment fee
Members over three months, commitment fee of one per cent of loan plus GCT.
New Members commitment fee of two per cent of loan plus GCT.
Legal Fees
$6,400 plus GCT.
In addition to the loan checklist, there are additional requirements to be met depending on what the purpose of the loan is. Mr. Haughton outlines three typical loans.
For motor vehicle loans
Requirements outlined previously plus:
Pro-forma invoice from car dealer.
Receipt for down payment.
Import Entry.
Certificate of fitness.
Certificate of registration.
Motor vehicle certificate of title.
Driver's license and TRN.
Current valuation report.
Motor vehicle has to be. comprehensively insured for one year and open.
For business loanS:
Requirements previously discussed plus:
Estimate of expenditure.
Cash flow projection for one year.
At least two credit references. from previous or current creditors.
Business proposal or one-page. description of business.
Financial statements.
For PERSONAL LoanS:
You need items previously discussed plus indicating the purpose of the loan.
