Co-maker Information

The practice of co-making is an integral part of the Credit Union's philosophy of people helping people. It is based on the concept of members pooling resources to assist each other to have access to loans and trusting the borrowing members will honour this trust by repaying all sums borrowed.

WHAT IS A CO-MAKER?

A co-maker is a member who pledges his/her savings as security for a loan taken by another member. A co-maker is required when the borrowing member has insufficient savings to fully secure his/her loan request and cannot provide other forms of collateral security.

QUALIFICATIONS OF A CO-MAKER

A Co-maker Must:
• Be a member in good financial standing.

• Be a member for more than six months.

• Be over the age of 18 and have adequate savings to cover the amount pledged.

IMPLICATIONS OF BEING A CO-MAKER

In accordance with article 26 of the Credit Union's bylaws no member may withdraw any share if it reduces his/her shareholdings to less than his/her liability to the Credit Union as a borrower, co-maker or guarantor.

The amounts pledged in support of a loan cannot therefore be withdrawn while the loan remains unpaid.

RESPONSIBILITIES OF A CO-MAKER

By co-making a loan the co-maker is doing the following:
• Attesting to the trustworthiness of the borrower.

• Agreeing to be a possible point of contact between the Credit Union and the borrower.

• Agreeing to assist the Credit Union in collecting the outstanding amounts in the case of default.

• Agreeing to repay the amount pledged in the event that the borrower fails to repay.

Loan Application Form

 
This Form must be completed by members applying for a loan. The additional documentation required for the type of loan should also be attached before this application is submitted.