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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 9.95% 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. |
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| For more information, please feel free to call us on 212 4000. |
| MANAGEMENT |
| May 06, 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. |
| (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 9.95%
LOAN AMOUNT |
MINIMUM SALARY |
MONTHLY INSTALMENT
162MONTHS |
LOAN AMOUNT |
MINIMUM SALARY |
MONTHLY INSTALMENT
162 MONTHS |
Rs |
Rs |
Rs |
Rs |
Rs |
Rs |
100,000 |
2,162 |
1,124 |
1,000,000 |
21,619 |
11,242 |
150,000 |
3,243 |
1,686 |
1,100,000 |
23,781 |
12,366 |
200,000 |
4,324 |
2,248 |
1,200,000 |
25,943 |
13,491 |
250,000 |
5,405 |
2,811 |
1,400,000 |
30,267 |
15,739 |
300,000 |
6,486 |
3,373 |
1,600,000 |
34,591 |
17,987 |
350,000 |
7,567 |
3,935 |
1,800,000 |
38,915 |
20,236 |
400,000 |
8,648 |
4,497 |
2,000,000 |
43,239 |
22,484 |
450,000 |
9,729 |
5,059 |
2,100,000 |
45,401 |
23,608 |
500,000 |
10,810 |
5,621 |
2,200,000 |
47,563 |
24,733 |
550,000 |
11,891 |
6,183 |
2,400,000 |
51,887 |
26,981 |
600,000 |
12,972 |
6,745 |
2,600,000 |
56,211 |
29,229 |
650,000 |
14,053 |
7,307 |
2,800,000 |
60,534 |
31,478 |
700,000 |
15,134 |
7,869 |
3,000,000 |
64,858 |
33,726 |
750,000 |
16,215 |
8,432 |
3,100,000 |
67,020 |
34,851 |
800,000 |
17,296 |
8,994 |
3,200,000 |
69,182 |
35,975 |
850,000 |
18,377 |
9,556 |
3,400,000 |
71,344 |
37,099 |
900,000 |
19,457 |
10,118 |
3,500,000 |
73,506 |
38,223 |
950,000 |
20,538 |
10,680 |
3,715,000 |
75,668 |
39,347 |
The above figures have been rounded off to the nearest rupee and actual figures may differ slightly.
GC/RR/SB/03.05.13
Last Updated MAY 06, 2013
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 nor
proceeding on leave without pay.
(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 sould be produced in case the loan applicant is employed as a Health Care Assistant.
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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 can provide one or two personal guarantors, provided the loan amount is fully secured. |
| 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 |
| 5.4.1 |
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. |
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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. |
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) If an applicant has
already reached the age of 48 years, the loan amount or period of refund
will be based on his/her future pension.
(d) The
applicant may opt to offset his existing
loan balance to get the maximum amount by
signing
an undertaking |
| (v) |
A recast of loan may be granted after having
refunded 12 instalments. |
|
| 2. |
Loan Repayment |
| (i) |
The loan is refundable
in a maximum of 162 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. |
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(b) |
The fixed charge or bank guarantee, wherever applicable, shall
become realisable forthwith. |
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|
(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 |
|
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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 nor on leave without
pay (valid for one week). |
| (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.) |
|
| (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 |
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Interest rate is currently at 9.95% p.a. which 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 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. In addition to death, the contribution may also cover total permanent disability of the loanee subject to Board approval in line with existing policy. The effective date of the MSC is when the loan has been disbursed.
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| 11. |
R.S.F
Loan |
| 1. |
Entitlement |
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R.S.F contributors who are shareholders and are
employed by the Government and Organisations approved
by the Board. |
| 2. |
Amount |
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90 % of R.S.F
accrued benefits. |
| 3. |
Refund
Period of Loan |
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Should not exceed normal retirement age of 60
years or otherwise. |
| 4. |
Security
offered |
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RSF account
to be pledged by the loan applicant |
| 5. |
Rate
of Interest |
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9.95% p.a |
| 6. |
Administration
Fee |
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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 |
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.) |
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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. |
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13.1
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Mode of Payment |
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| 13.1.1 |
Loan proceeds will be directly credited to applicant's bank account. |
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13.2
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Rate of Interest |
|
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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. |
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14
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Special Loan Scheme |
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