By Dennise Williams, Staff ReporterTHE CABLE & Wireless Employees Co-operative Credit Union Ltd., has thrown their hat in to the loan business ring with their new Salary Deposit line of credit.
The programme permits loans for unsecured amounts up to 10 times net monthly salary. The credit union, with nearly 9,000 members is comprised of employees and their families within the telecommunications industry. Ex-employees of the industry are also welcomed.
According to information given to Wednesday Business by the credit department, the salary deposit line of credit is similar to a credit card. It is a revolving loan programme that operates like standard credit cards where what you pay back is the amount available to you.
ACCESS
Access to the approved funds is via an ATM machine or a credit union teller. The important point of note is that in this loan programme, one's salary must go directly to the credit union each month.
Additionally, successful applicants must have existing savings with the credit union, a credit history with the institution of at least five years, and must either own a motor vehicle, house or land.
Carol Jones, loan officer at the credit union, said "we don't put a lien on the title of your assets, but we require loan applicants to own these items in order for us to calculate net worth (assets minus liabilities).
Also, if the asset is co-owned by husband and wife, we ask that the other spouse co-signs the loan." Jones explains the rationale behind the asset ownership criteria.
"The loan given cannot exceed 10 per cent of your net worth. At the end of the month, after paying this loan and all your other expenses, you must have $20,000 left over," he said. "And since assets owned is used in the calculation of net worth, so even if someone is earning a big salary, if they own nothing, we will not grant a loan."
Despite the strict requirements and interest rates at 30 per cent over a three year period (on the reducing balance), Jones tells Wednesday Business that response has been very good despite competition from other loan providers.
"Since we have placed the ads in the papers, we are getting a great deal of calls, but I cannot tell you how much," he said. "And other providers such as NCB don't affect us really as our products come with life insurance and we have a strong following. There are persons committed to the credit union.
There are die-hearted credit union members who will always support us," he said.
The C&WJ Employees Co-operative Credit Union was founded in 1961. It is one of three credit unions serving the utilities industry along with JPS (Jamaica Public Service) Employee's Co-operative Credit Union Ltd. and National Water Commission Co-operative Credit Union Ltd.
