Penalties
- All payments made after the due date will incur a five-thousand-naira (N5,000) late fee, in addition to interest on the total loan, which will be paid separately.
- Increased interest rates: Defaulting on a loan may result in an increase in the interest rate, which will increase the overall cost of the loan. Interests compound.
- Credit score damage: We are in partnership with CRC Credit Bureau LTD, data is shared. Defaulting on a loan can negatively impact a person’s credit score, making it more difficult to obtain credit in the future.Legal action: GTCS may pursue legal action to recover the outstanding debt if a loan goes into default
- In severe circumstances, GTCS may take action to repossess or foreclose on collateral securing the loan, if the loan remains in default. This could result in the loss of property or assets purchased from or through GTCS, or those used as collateral, where applicable
- A member who defaults on payment loses the right to obtain loans until 3 months after clearing the defaulted loan. Repeat defaults will result in loan denial
- A member who defaults on more than one refund cannot access their savings upon terminating membership until six ( 6) months after termination
- Membership may be terminated for lack of integrity, evidenced by loan default, after a formal warning and receipt of a termination letter.
- No tolerance for financial irresponsibility such as bounced checks or repeated missed payments, which we define as LOAN DEFAULT.
Notification of Warning & Banning
In the event of default, the individual might receive a formal warning from the GTCS. Should there be another instance of default, the executives will consider termination of membership in a management meeting. If a continuous pattern of financial irresponsibility is established, the individual will receive a written notice of membership termination.
Savings & Withdrawal
A member may be able to collect funds from their savings while still retaining their membership
Please note:
- A member who is currently on a loan cannot withdraw from their savings.
- A member serving as a guarantor for a loan may withdraw their savings if the amount exceeds the amount indemnified by their guarantorship, subject to a capital base minimum balance.
- A member wishing to withdraw part of their savings must fill out a special request form for savings withdrawal.
- Once a member has withdrawn part of their savings, they must start saving afresh and will not be eligible for any loans until they have met the requirements of their probationary period.
- A member who has withdrawn funds from their savings must continuously save for the next three probationary months without applying for a loan.
- At the end of the probationary period, if the member wishes to access a regular loan, it can only be up to two times the amount of their new savings.
- When requesting for a savings withdrawal, members may not reduce their savings below the capital base, which is currently set at thirty thousand naira, (₦30,000) and subject to review.
- Dividends are calculated based on the remaining balance after the savings withdrawal.
Membership Termination
A member may terminate their membership at any time and for any personal reason by filling out a membership termination form.
After applying for termination, it takes 3-5 working days to receive approval and collect savings in the form of a check or an online transfer.
Delays may occur if the member has defaulted or has outstanding loans or guarantees to fulfil before termination.
Delays in collecting savings may occur if the member has a history of defaulting or has outstanding loans/guarantees to fulfil before termination request can be approved.
If the member is not on a loan and not serving as a guarantor for another member’s loan, their form will be approved and they may receive a termination approval letter and a cheque for their savings, alternatively, their savings might be wired into their bank account, of their choice.
A former member does not have access to the rights and privileges of the cooperative and will not be eligible for dividends, even if they resign just before the Annual General Meeting (AGM).
A member cannot terminate their membership if they are on a loan or serving as a guarantor for a loan in progress. They must wait until the guarantee has been fulfilled and the loan has been repaid.
A member who defaults on more than one refund cannot access their savings upon terminating membership until six ( 6) months after termination.