• What is a Credit Union? Open or Close

  Credit Union is a group of people sharing a common bond of employment, association or residence. The Credit Union is owned and democratically controlled by the members.

• What is the purpose of a Credit Union? Open or Close

  The purpose of the Credit Union is to encourage thrift through regular savings by the members, and from the savings accumulated, grant loans to members at a reasonable rate of interest.

• How is the Credit Union managed? Open or Close
  • The members elect the Board of Directors at our Annual General Meeting they provide guidance on the policies of the credit union.
  • The Credit Committee which is elected by the members at our Annual General Meeting reviews and approves applications for loans.
  • The Supervisory Committee which is elected by the members at our Annual General Meeting examines the books and records of the Credit Union to assure that the affairs of the Credit Union are being handled properly.
• Are Credit Union funds safe? Open or Close

  The financial soundness of the Credit Union is safe-guarded in several ways:

  • By an annual audit conducted in accordance with the requirements of the Co-operative Societies Act.
  • By the bonding of all officers who handle the Credit Union funds.
  • By the creation of a Stabilization Fund to guarantee deposits.
• What is the Stabilization Fund? Open or Close

  The Jamaica Co-operative Credit Union Stabilization Fund was set up by Credit Unions to guarantee that on the liquidation of a Credit Union, a member will get $1.00 for every $1.00 he has with the Credit Union.

• What is the difference between Shares and Deposits? Open or Close

  Shares are divided in two categories. Permanent Shares which represents a member's ownership or equity in the Credit Union and forms part of the capital base of the Credit Union. While the Voluntary shares are used to determine your eligibility for loans and dividends and you are encouraged to save regularly in shares. The other way to save is by deposits where members lodge and withdraw to meet current demands. These are interest bearing accounts.

• Do you get returns on your savings? Open or Close

  Yes. Once the Credit Union makes a surplus, the members decide at the Annual General Meeting the percentage dividends to be paid on shares. Interest is paid on deposits.

• Can I withdraw from my Shares and Deposits accounts? Open or Close

  Yes, but if you are going to withdraw a large amount, you are requested to give the Office some notice.

• Are the Savings Insured? Open or Close

  Yes, through CMFG Insurance Company. When you die, your savings are increased by a certain amount, depending on your age, and given to your beneficiary. You should therefore ensure that you complete the Nomination form indicating who your beneficiary should be.

  Your loans are also insured and the "Debt dies with the Debtor".

• What is the interest rate on loans? Open or Close

  Interest on loans varies between 9 and 20 percent per annum on the reducing balance, for the time being.

• When can you get a loan? Open or Close

  Loans can be accessed immediately upon joining the Credit Union conditions apply. Applications for loans must be made on the specified form provided by the Credit Union and the purpose must be stated. If the facts given in the application are found to be misrepresented, or the money used for some other purpose, the loan shall become immediately due and payable.

• How much can you borrow? Open or Close

  The Credit Union loan policy will dictate this. Consideration will be given to all requests and decisions made based on your need, the amount of your savings, your ability to repay and your collateral etc.

• What kind of security will the Credit Union accept? Open or Close

  In addition to your savings, we will accept co-makers savings, deposits, registered titles, Bills of Sale over motor vehicles, stocks and shares and the cash-surrender value on insurance policies.

• Who is a Co-Maker? Open or Close

  This is a member who pledges their savings to enable you to get a loan. They are like a guarantor. A co-maker's shares cannot be withdrawn until the loan has been repaid. Before you sign as a co-maker or guarantor, please check for the borrower's loan balance as you will be liable for the member's total liability with the Credit Union.

• Will lodgments to your accounts at the Credit Union require the approval of a Bank official? Open or Close

  No.

• Will you need permission to co-sign/guarantee a fellow member? Open or Close

  No.