The Amnesty and Interest Relief offers are available options for the full repayment of loans with large arrears. Borrowers along with their sureties are asked to contact the Credit Unit about the terms of these offers which are subject to Management Approval.
Amnesty – is applicable where the stipulated repayment period has expired and the loan has an outstanding account balance that is due and payable.
Interest Relief – is applicable where a loan is in arrears and the beneficiary is eager to close the loan within the short term.
Deferments, Graduated Payment plans and Forbearance are available to those persons who are experiencing difficulty making monthly loan payments. These plans once approved are reviewed on a quarterly or semi-annual basis. They are as follows:
Deferment allows borrowers who are not in default and who provide credible evidence of further study, economic hardship or unemployment to pay the interest only part of their monthly instalment for a specified period. Persons in arrears are not eligible for a deferment.
Forbearance allows borrowers who are in arrears and/or unable to make regular/full loan payments to pay the principal part of the loan instalment for a short period.
Graduated payment plans allows borrowers in arrears to pay a lower monthly instalment for a specified period. Subsequent incremental increases thereafter ensure the repayment of your loan within the payback period.
The Credit Officers will work with each borrower to determine the best option available.
The SRLF will initiate its 90 day arrears procedure against those borrowers whose loans are in arrears and who have not negotiated a repayment option with the SRLF.
The First Letter – If your monthly payment is not received by the end of the month, the first letter notifies the defaulter that he/she has twenty-one (21) days in which to clear the arrears amount. A copy of this letter is sent to the defaulter and his/her sureties.
The Second Letter – If your account remains delinquent, the second letter notifies the defaulter that he/she has fourteen (14) days in which to clear the arrears amount. A copy of this letter indicating that further action may be sought is sent to the defaulter and his/her sureties.
The Third Letter – Continual default would trigger the third and final letter which notifies the defaulter that he/she has fourteen (14) days in which to clear the arrears amount failing which the account would be sent to an attorney-at-law. A copy of this letter outlining both the borrower and sureties’ legal obligation to repay the loan and the SRLF’s remedies is sent to the defaulter and his/her sureties.
If you fail to pay as stipulated by the three (3) warning letters, the SRLF has the following options:
Require you to immediately repay the entire unpaid amount of your loan.
Sue you and your sureties.
Require you to pay reasonable collections fees and costs plus court costs and attorney fees.
Withhold defaulters' eligibility to obtain loan deferments.
Evidence certifying that you are permanently disabled or medically unfit for work must be submitted along with a claim to our insurers. This must be done within three (3) months after medical certification. The insurance company will pay your loan instalment up to a maximum of six (6) months in the event of a short term disability and will pay out the full loan amount for those deemed medically unfit to resume work.
A death certificate and registration of death must be submitted by a family member and/or other representative to confirm the borrowers’ death. This must be done within three (3) months of the death.