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THE MAURITIUS CIVIL SERVICE MUTUAL AID ASSOCIATION LTD.

LOANS

 

NOTICE TO MEMBERS

The Mutual Aid Association would like to inform its valued members that the following changes will be applicable from May 06, 2013:

Personal Loans

(i) Interest rate is set at 9.70% p.a (floating rate).
(ii) Processing fee 0.75% on loan amount together with Mutual Solidarity Contribution (MSC) of 2.25% to 3.25% .
(iii) The first instalment will not be retained on loans disbursed.
Terms and conditions apply.
   
For more information, please feel free to call us on 212 4000.
MANAGEMENT
June 18, 2013

1. Types of Loans

(i)
There is no loan ceiling. Loan will be based on the repayment capacity. Please refer to the loan table below for details of eligibility. The actual loan amount is based on eligibility and is not necessarily the same as the amount applied for.
(ii) Educational loan of Rs 600,000 to finance tertiary studies refundable over a period of 12 years.
(iii) R.S.F Loan secured by the Retirement Savings Fund
(iv)
Loans secured by either mortgage on property / fixed charge or fixed deposit with the Association
or Life Assurance Policy (surrender value) refundable in a maximum period of 180 months:
amount of loan depending on the repayment capacity of the applicant.


2. Loan Eligibility and Repayment (Personal Loans)

INDICATIVE LOAN TABLE BASED ON THE MAXIMUM REPAYMENT PERIOD
Interest Rate 9.70%
(NOT FOR PENSIONERS)

LOAN AMOUNT
MINIMUM SALARY
MONTHLY INSTALMENT
180 MONTHS
LOAN AMOUNT
MINIMUM SALARY
MONTHLY INSTALMENT
180 MONTHS

Rs

Rs

Rs

Rs

Rs

Rs

100,000

2,031

1,056

1,000,000

20,314

10,563

150,000

3,047

1,584

1,100,000

22,345

11,620

200,000

4,063

2,113

1,200,000

24,377

12,676

250,000

5,078

2,641

1,400,000

28,440

14,789

300,000

6,094

3,169

1,600,000

32,502

16,901

350,000

7,110

3,697

1,800,000

36,565

19,014

400,000

8,126

4,225

2,000,000

40,628

21,127

450,000

9,141

4,753

2,100,000

42,659

22,183

500,000

10,157

5,282

2,200,000

44,691

23,239

550,000

11,173

5,810

2,400,000

48,754

25,352

600,000

12,188

6,338

2,600,000

52,816

27,464

650,000

13,204

6,866

2,800,000

56,879

29,577

700,000

14,220

7,394

3,000,000

60,942

31,690

750,000

15,235

7,922

3,100,000

62,973

32,746

800,000

16,251

8,451

3,200,000

65,005

33,802

850,000

17,267

8,979

3,300,000

67,036

34,859

900,000

18,283

9,507

3,400,000

69,068

35,915

950,000

19,298

10,035

3,500,000

71,099

36,971


The above figures have been rounded off to the nearest rupee and actual figures may differ slightly.

RR/SB/29.04.2014

Last Updated May 02, 2014


3. How to apply for a Loan

(i)
The application form should be filled in properly and signed by applicant and guarantors.
(ii)
The application should be supported by the following documents :
(1) Original of your most recent payslip/ pension slip.
(2) Original and photocopies recent Payslip of Applicant and Guarantors
(3) Originals and Photocopies of National Identity Card of Applicant and Guarantors.
(4) Original and Photocopy of Bank Statement or passbook showing the Bank Account Number of Applicant (not more than 3 months).
(5) A certificate from the Applicant's department stating that he is neither under report, not on leave without pay, not involved in a police case. (Valid for 15 days)
(6)Bank statement showing name and address / Utility Bill (CEB or CWA or Mauritius Telecom) - not more than 3 months. (If utility bill is not in name of applicant, a written confirmation should and NIC should be secured from the utility bill account holder.)
(7) The original letter of confirmation issued by the Ministry should be produced in case the loan applicant is employed as a Health Care Assistant.
(8) Completed Emailing of Statement of Accounts and the Borrowers Declaration Forms.
(9) Loan Deduction Authority Form (LDAF) by loanee/guarantor.
(10) Loan offset form / letter of undertaking (where applicable).

4. Recast of Loan

 A member is eligible to apply for a new loan after having refunded a minimum of six consecutive instalments on an existing loan.

5. Guarantors
(Applicable to Personal Loan And Educational Loan )
5.1 Except for pensioners, applicants need to provide one or two personal guarantors, provided the loan amount is fully covered. Personal guarantors must be members of the Mutual Aid.
5.1.2 Guarantors must sign undertaking of accepttance if applicant is under report.
5.2 The following conditions shall apply if the loan is secured by a single guarantor :
5.2.1
In case the guarantor is a loanee the net pay into bank of the guarantor excluding bonuses, overtime and allowances other than travelling and rent should be at least equal to the monthly loan instalment of the loanee;
5.2.2
In case the guarantor is not a loanee, the net pay into bank excluding bonuses, overtime and allowances other than travelling and rent should be at least twice the loan instalment of the loanee;
5.2.3 The guarantor should be eligible for the loan amount applied for by the loanee;
5.2.4 The guarantor should assign an undertaking that he is agreeable to be sole guarantor.
5.3

The following conditions shall apply if the loan is secured by two guarantors.

5.3.1 The net pay into bank of each guarantor excluding bonuses, overtime and allowances other than travelling and rent should be at least half of the monthly instalment of the loanee;
5.3.2 In case one guarantor is not a loanee, his/her net pay into bank excluding bonuses, overtime and allowances other than travelling and rent should be at least equal to the monthly instalment of the loanee;
5.3.3 Each Guarantor should be eligible to at least 50% of the loan amount.
5.4 GENERAL CONDITIONS
5.4.0
The Association reserves the right to make amendments to any of its loan policies and /or procedures at any point in time. The Association furthermore reserves the right to apply such amendments to loans already approved and granted.
5.4.1
The loan repayment period may not exceed the retirement age of a guarantor, unless the latter's future pension is sufficient to repay the loan in case of default payment.
5.4.2 The Association reserves the right to reject a guarantor after assessing the risk profile.
5.4.3
The attention of the guarantors are drawn to paragraph 2.1 of the loan contract. Guarantors should be fully aware of their responsibilities when they guarantee a loan.
5.4.4 For loan above Rs 600,000 guarantors can stand as surety for four loans only and a maximum limit of Rs2.4M(sum of all loans) below Rs600,000.
5.4.5
Whenever a spouse stands as guarantor for a loan, a second guarantor must be provided as additional security and latter's net pay must cover the full loan instalment.
5.4.6
Husband and wife cannot stand as guarantors for a client.
5.4.7
In case the applicant bears the same surname as any of the guarantors or in case both guarantors bear the same surname, their relationship must be disclosed on the loan application form.

6. Mode of payment

(i) In the normal course, the loan amount is credited to the applicant s bank account within a week.
(ii) Details of the loan granted are forwarded to applicant by post within 15 days.
(iii) The first instalment and relevant charges are deductible from the loan amount.

7. Mode of Refund of Loan

(i) Deduction will be effected directly from applicant’s salary until settlement of the loan.
(ii) In case of death of a loanee, the outstanding loan balance is immediately written off.
(iii) If for one reason or another, a loanee stops servicing his loan, his guarantors will be responsible
to pay the outstanding debt.

8. Advantages of taking Loans from The Mutual Aid

(i)
Loan payment is made by direct bank transfer and generally within a week of the recast of
the application;
(ii)
On the death of a loanee, the outstanding loan balance is immediately written off;
(iii)
Loan deduction is effected at source from salary;
(iv)
After refunding six loan instalments, loanee qualifies for a recast of loan based on capital refunded;
(v)
Interest is computed on the net balance of the loan daily;
(vi)
Retired members are also eligible for loans;
(vii)
A competitive rate of interest is charged on loans.
(viii)
No penalty is claimed on early settlement of loan account.
(xi) Our administrative cost of 0.75% is one of the lowest.

9.Mutual Aid Quick Loan Scheme

10. Educational Loan Scheme

Ref :ED/06.05.11

The Educational Loan Scheme is meant to finance the tertiary education of a member, his wards or
spouse.

TERMS AND CONDITIONS

1.
(i) Only one educational loan will be disbursed per course.
(ii) A couple (husband and wife) may apply jointly for an educational loan of upto Rs 600,000 for one ward.
(iii)

A member will be eligible to a maximum of two educational loans, for himself and his ward depending on his repayment capacity.

(iv)

Each loan will be disbursed in a lump sum up to a maximum of Rs 600,000 depending upon the undermentioned criteria :

(a) LOCAL INSTITUTIONS – Full tuition fees + 25 % as ancillary expenses.

(b) ABROAD – twice full tuition fees up to a maximum of Rs 600,000 per loan.

(c) The applicant may opt to offset his existing loan balance to get the maximum amount by signing
an undertaking

(d) Loan Deduction Authority Form (DAF) by loanee/guarantor.
an undertaking

(v)

The actual loan amount is based on eligibility and is not necessarily the same as the amount applied for.

2.

Loan Repayment

(i) The loan is refundable in a maximum of 180 equal monthly instalments or less depending on the applicant's age. In the case of an applicant who will reach the age of 60, the loan amount or the refund period will be adjusted.
(ii) Administrative cost and a solidarity contribution will be retained from the loan amount before proceeds are credited into the bank account of loanee.
(iii)

Each subsequent monthly instalment should be paid at latest on the last working day of each month failing which :

(a) The totality of the outstanding balance on the loan shall become immediately due and demandable.
    (b) The fixed charge or bank guarantee, wherever applicable, shall become realisable forthwith.
    (c) Guarantors will be required to service the loan.
3. Securities to be offered by the borrower:
(i) One or two personal guarantors acceptable to the Association
(ii) A fixed charge on the property of the borrower or ;
(iii) A bank guarantee
  Documents to be produced:
Your application should be supported by the following documents :
(a) Original of your recent pay slip/ pension slip. (not more than two months)
(b) Original and Photocopy of your National Identity Card.
(c) Originals of recent pay slips and photocopies of NID cards of your guarantors.(not more than two months, not applicable for pensioners)
(d) Original and Photocopy of bank document showing bank account number and name of applicant;
(e) Certificate from your department stating that you are neither under report , not on leave without pay and not involved in a police case. (valid for 15 days)
(f) Certified copy of birth certificate of ward / marriage certificate in case of the spouse.
(g) Particulars of the Course and letter of enrolment of student emanating from the institution.
(h) Utility Bill (CEB or CWA or Mauritius Telecom) - dating back to not more than 3 months.(If utility bill is not in name of applicant, relationship needs to be stated and applicant shall sign on the utility.)
(i) Completed Emailing of Statement of Accounts and the Borrowers Declaration Forms.)
(j) Loan Deduction Authority Form (LDAF) by loanee/guarantor.
(k) Loan offset form / letter of undertaking ( where applicable ).
(a)

PLEASE NOTE:

Originals and photocopies of NID cards and payslips of guarantors together with their
telephone number/s should be submitted.
The net pay of guarantor/s should be sufficient to repay the full loan instalment in case of any default of payment by the borrower.
Any guarantor can stand as surety for only two loans above Rs 600 000 and he/she should be a shareholder.
At the time of application, a guarantor should not be over 48 years of age for a loan refundable in 162 months.
(b) Relevant documents concerning Fixed Charge on Property:
(i)
The deed containing no provision purporting to give to any existing mortgage
or similar charge on the property – priority over the fixed charge.
(ii)

If burdened with any inscription, authorization / consent from the relevant organisation
that it has no objection that the fixed charge being ranked “ Pari Pasu” with the
existing inscription

(iii) All legal documents will be registered at the cost of the borrower.
(c)

Bank Guarantee

A guarantee issued by a bank and registered in Mauritius.

4. Rate of Interest
 
The loan shall carry an Interest rate of 9.70% p.a. which is calculated monthly based on the outstanding capital and is tagged to the Mutual Aid Base Rate (MBR). The interest rate will be automatically adjusted in case of any percentage change in the MBR. Consequently, the loan maturity date may be extended or reduced to take into account fluctuations in interest rate during the loan period. However, the monthly loan instalment will remain the same.
5
Fees
Applicants will be required to pay a one off processing fee of 0.75% on the loan amount and a Mutual Solidarity Contribution (MSC) of 2.25 % to 3.25 % depending on the term of the loan to write off the loan in case of death. The effective date of the MSC is when the loan has been disbursed. Loanees will be charged Rs 50 as Bank Of Mauritius (MCIB) fee.
11. R.S.F Loan
1. Entitlement
 

R.S.F contributors who are shareholders and are employed by the Government and Organisations approved by the Board.

2. Amount
  90 % of R.S.F accrued benefits.
3. Refund Period of Loan
  Should not exceed normal retirement age of 60 years or otherwise.
4. Security offered
  RSF account to be pledged by the loan applicant
5. Rate of Interest
  9.70% p.a
6. Administration Fee
  Pay a one off processing fee of 0.75% on the loan amount together with Mutual Solidarity Contribution (MSC) of 2.25% to 3.25% depending on the term of the loan to write off the loan in case of death.
7. Premium
  NIL . In case of death, loan balance will be deducted from RSF accrued benefits.
Optional : May be considered at the request of the RSF contributor.
8. Other terms and conditions shall apply.

How to apply for a R.S.F Loan

(i) The application form should be filled in properly and signed by applicant.
(ii)

The application should be supported by the following documents :
(1) Original and photocopy recent Payslip of Applicant
(2) Original and Photocopy of National Identity Card of Applicant
(3) Original and Photocopy of Bank Statement or passbook showing the Bank Account Number of Applicant.
(4) A certificate from the Applicant's department stating that he is neither under report nor
proceeding on leave without pay.
(5) Application form together with relevant certified copies of documents may be sent by mail
(6) Completed Emailing of Statement of Accounts and the Borrowers Declaration Forms.
(7) Loan Deduction Authority Form (LDAF) by loanee/guarantor.
(8) Loan offset form / letter of undertaking ( where applicable ).

 

12.

 

Mutual Aid Spouse Loan Scheme



13. How to become a member


A.
Documents/Information to be submitted
 
1.
Original and Photocopy of National Identity Card.  
2.
Original of Latest Payslip  
3.
Original and Photocopy of Bank Name and Account Number  
4.
Original and Photocopy of latest Utility Bill (CWA, CEB or Mauritius Telecom)- not more than 3 months. (If utility bill is not in name of applicant, a written confirmation and NIC should be secured from the utility bill account holder and the original and copy of NIC of signatory.)  
5.
Loan offset form / letter of undertaking ( where applicable ).  
B.
Other Information  
1.
Applicant should buy 3 shares costing a total of Rs330.  
2.
Shares are sold from 8:45 a.m. to 3:15 p.m.  
     

13.1

Mode of Payment  
13.1.1 Loan proceeds will be directly credited to applicant's bank account.  
     

13.2

Rate of Interest  
 
Interest is calculated daily based on the outstanding capital and is tagged to the Mutual Aid Base Rate (MBR). The interest rate will be automatically adjusted in case of any percentage change in the said MBR. Consequently, the loan maturity date may be extended or reduced to take into account fluctuations in interest rate during the loan period. However, the monthly loan instalment will remain the same.
 
     

14

Special Loan Scheme  
 
© 2014