We the members and organizers of the Possible Loan Service Credit Union (PLSCU), situated in Paynesville having considered the role of Credit Unions, the poor living conditions of out people who are living in abject poverty, hardly make a living. We the members and organizers of the Possible Loan Service Credit Union (PLSCU), situated in Paynesville having considered the role of Credit Unions,
the poor living conditions of out people who are living in abject poverty, hardly make a living and the process involve into getting loans from commercial banks by our people to engage into active business activities, have formed ourselves into a Credit Union to provide assistance to our community in which we live. Objectives:
To promote thrift and the judicious use of financial resources among its members
To afford members the opportunities to accumulate savings and create facilities for them from which they can obtain loans for productive and provident purposes at fair interest rate
To establish and promote good financial activities, neighborliness among its members
To provide forum for discussion of common problem, share business information and experience
Plan and execute business activities as the members shall decide from time to time
As a financial institution, this Credit Union shall be a non-political and non-governmental organization (NGO)
Our Credit Union’s
Authorities
Board of Directors (BOD)
Management Control Team (MCT)
Membership Requirements
Membership to this Credit Union shall be limited to employees of PLSCU, and other users of Paynesville City and residents within hundred kilometers of Jacob Town Community. There are two kinds of membership in PLSCU:
Statutory Shareholders
Executive Shareholders
Persons belonging to the immediate family of a credit union member may also be admitted to membership in the union, notwithstanding. Immediate family includes the spouse, parents and children of a member, whether living in the same household or not, and any other individual living in the same household as the member. Societies, associations, credit unions, partnerships, companies and governmental units that fall within the credit union’s criteria for membership may be admitted as a member of the credit union. Requirements for
General Membership
According to Articles 2 Section 6 and 22 Section 6, Membership
Requirement for members include:
Registration fees $500
ID Card …… $800
Pass Book ……… $200
Annual Calendar … $550
Application Form $100
Total ……… L$2,150
NOTE: Payment of these requirements is by stages. No member will be asked to pay the requirements in bulk, but he or she must be aware that said requirement must be paid in subsequent time in order to become a full member for the union. Shareholders Requirements:
According to Article 2 section 2a and 22 section 6 of our constitution; Membership Requirements for shareholding in PLSCU shall also be noted as follows:
Registration ……… $1,500
Membership Form … $500
ID Card ……………… $800
Pass Book ………… $200
Total …………………… . L$3,000
Dividends are issued in order to provide for a monetary return to members on their ownership shares based on available earnings. Dividends should only be paid after reserve transfers are made, and only if there are available earnings from the fiscal year operations. It is essential that the rate of return to members be higher than the rate of inflation and competitive with the financial market. At the close of a fiscal year [or at another periodic interval], the board of directors may declare dividends to be paid on ownership shares from available earnings if the credit union has sufficient regulatory capital and has made sufficient provisions for loan losses. Dividends may be authorized only after making the required reserve transfers. Dividends may be paid at various rates, taking into consideration the conditions pertaining to each type of share account. Interest Rates
Interest Rate is added on Savings and Shares of all members of this Credit Union at the end of Fiscal Year. A fair Interest Rate is also added on loans receive by members. Depending on the rates from money sources to feed our members, the constitutional rates include:
MEMBERS … 9%
NON-MEMBERS… 15%
NOTE: 4% is either added or subtracted on loan for members depending on the sources of money receive from one of the banks in the city. For Example, if PLSCU receives Loan from CBL for its members at the rate of 9% Interest, then 4% is added for PLSCU members and 4% added for non-members; obviously increasing the following rates:
Instead of 9% = 13% for member
Instead of 15% = 19% for non-members
Interests on Deposits
The Board of Directors shall fix the interest to be paid to members on their savings with the credit union annually after the audit. Interest to be paid shall not exceed 12% per annum. Interest to be paid on savings shall be declared by the Board of Directors from the net earnings after the audit at the close of each fiscal year and the setting aside of the 25% (twenty five) percent statutory reserve. No interest shall be paid on any account whose balance is below the annual minimum. Withdrawals
Savings can be withdrawn at any time, provided an advanced notice has been given to the union as contained in the loan application form. No withdrawal is allowed when the account holder is in arrears on debt owed to the credit union. However, withdrawal may be made, provided the account holder intends to offset his/her arrears. Any member wishing to withdraw from the savings with the credit union in less than 12 months from the date of registration, shall be liable to pay a service fee of 10% which shall be deducted from such members savings
A member wishing to withdraw from the credit union after 12 months shall pay a service fee of 5% of his/her total savings
Dormant Accounts
A member’s accounts shall be declared dormant after three (3) months of inactivity. All dormant accounts shall be charged a maintenance fee of four (4) percent per month for a period of one year. There-after, that account shall be transferred to the general reserve. No dormant account shall receive dividend or interest. Our Education & Training Programs cover:
Members’ duties and obligations
Personnel’s duties and obligations
Accounting and Auditing
Board of Directors and responsibilities
Constitution and implementation of various projects
Cooperative law and democratic principle and good governance
Personnel administrative and general management
Risk management, Financial security and Investment of funds
Our Vision
To develop innovative strategies to sustain a role that members can play in serving and strengthening the financial system by fitting into microfinance and anti poverty financial agendas. Our Mission Statement
To revamp of the image of members by strengthening PLSCU to embark on professional and technological modernized best practice in revitalizing the members in Liberia. Our Goal
To develop savings led-microfinance through the Credit Union model to reduce poverty in Liberia
Loan Repayment shall be in monthly installment as per the below categories:
L$ 500 - $ 3,000.00 1 Month
L$ 3,001 - $5,000.00 2 Months
L$ 5001 - $ 10,000 3 Months
L$ 10,000 - $ 25,000 4 Months
Above L$ 26,001 5 Months
If any default in the monthly repayment of loan occurs, an amount of 5% shall be charged as interest on the amount out standing for that month. No member of this union sues, takes to action, disgraces, disrespects or undermines each other while in the confines of this body.
