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The facility will be a vehicle for the accumulation
of foundation capital by members to enable them to achieve their
aspirations to resolve needs which require medium/long term financing.
It will provide financial support/resources
for access to Credit Union financing for the purpose of Housing,
Education and Business Development. The facility
will be open to develop other components identified with the needs
of members.
Generally, the facility will promote and accommodate
higher levels of savings specially created as seed capital. The
funds, available to a member, will be directly related to the amount
saved in respect to the special purpose.
How It Works
The central element/heart of the Facility
is the establishment of/investment in annuity specially made available
as “seed capital” in the form of deposits. These funds may be
deposited as an investment though side benefits may be attached
(eg) benefits from meeting RHOSP conditions.
Loan products are offered to a member who selects
according to needs. A member may negotiate and plan for
more than one loan product.
The funds accumulated through the annuity payments
will, together with approved share/loan ratios, form the basis
for loan amounts offered by the Credit Union.
Benefits to Member Particapation
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Income Tax deductible up to $6,000.00
per year.
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Low interest loans for Education and
Housing, the amount eligible will be related to the amount of
special savings. Participants will be given special consideration
and will be assured funding of purpose of their loan at the
agreed date.
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Savings to attain financial base for
housing and education will be tailored to member’s capacity
and need over predetermined period. This will be specially
suited to young members.
- Deposits to this account will earn interest above the
savings rate which will help in accumulation of required funds.
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Savings will be insured.
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Loans granted through this facility will
be at a rate lower than ordinary consumer or mortgage loans.
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Half (50%) of the interest rate will
be applied until after end of study (i.e.) the interest rate
of the loan will be half the normal rate during the period of
study.
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Special Conditions:
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Registered Home Ownership Savings Plan
(RHOSP) taken within one year of membership or within one year
of commencement of the plan will receive a further reduction
of 0.5% (one half percent) interest on loans approved.
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All members at whatever stage in their
career could benefit. Of particular mention are members who
would not have sufficient time to pay off a housing loan, for
example those nearing pensionable age. These members could invest
in facilities for accommodation or lease through a special loan
which could be repaid by pension funds after retirement. The
challenge to provide for the care and welfare of pensioners
could be met by investing in special housing schemes designed
to provide accommodation for pensioners.Accommodation would
be paid for example from purchase or lease financed by member’s
gratuity or earnings from rented property.
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