This entails merging of existing loans/loan. It gives members access to a new and cheaper loan terms and simplify member financial affairs. It reduces member’s debt burden to a single payment per month.
Terms and conditions:
1. Repayment period up to 48 months
2. Consolidation fee 10% of the loan being consolidated.
3. One Loan can be consolidated and spread for 48 months
4. The consolidation loan should not exceed 3 times of deposit less other loan balances
5. Interest rate: For loan up to 36 months’ repayment period will be at 1% per month and stretching from 37-48 will be at 1.2% per month all interests at reducing balance.
6. The Loans to be consolidated must have been paid for a period not less than 12 months.
7. Only loan products with the same interest rates is eligible for consolidation after attaining the set credit terms threshold.