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Cordova Multipurpose Cooperative Blog

13Aug 2016

Back to Back Loan

  • Deed of Assignment Form signed by the borrower
  • Deposits (savings/time) cannot be withdrawn and will be put on “hold” until full payment of the loan
  • Not subject to share capital ratio requirement
  • No co-maker necessary
  • Maximum of 100% loanable amount if interest is collected in advance up to due date or monthly interest collection
  • 80% loanable amount if interest is to be collected upon due date/end of term
  • Flexible term: Max. of 12 months
  • Mode of Payment:  Monthly
  • Interest Rate (Diminishing Method)

Savings Deposits

* Fully Secured – Sd rate 4% + 5% spread

Time Deposits

TD Rate (%) per annum Int. Rate (D) per annum Effective Rate
5 18.5 10
5.5 19.5 10.5
6 20.5 11
6.5 21.5 11.5
7 22.5 12
7.5 23.0 12.5
8 24.0 13
8.5 25.0 13.5
9 26.0 14
9.5 27.0 14.5
10 28.0 15
  • Loan Charges:
    • * Service Fee – 2%
    • * Loan Protection Insurance –( (loan amount/1,000)*0.53*term in months )
      • – Against Time Deposits
  • Member must surrender his/her Savings Deposit passbook
      • – Against Time Deposits
  • Member must surrender his/her Time Deposit Certificate