Loanlink Share Product
Interest free loans
The signature product of GIG CFI is the Loanlink Share product. The typical interest spread between deposits and loans is removed. Members do not receive interest on savings, as these savings take on the form of voluntary share capital. Once a member borrows, then interest is also not payable on the loan.
How it works
Members may borrow once a year, interest free from the GIG CFI. The size of the loan will be a maximum of 3 times the members savings. The repayment period will be equal to the period the members has actively saved.
Loan size is limited to 10% of the total asset base and a member can only have one outstanding interest free loan. at a time Members savings will act as collateral for the interest free loan. After repayment of the loan, a member has 'repaid' their own savings and will be able to borrow again.
As GIG CFI is a registered credit provider, it has to comply with the National Credit Act.
All loans applications are evaluated and takes into account repayment ability, character, collateral and other factors. If a member has an impaired credit record, then the P2P Product range might provide a solution.
When applying for a loan the following documents needs to be provided:
3 months latests bank statements
3 months latest salary slips
*Members who are foreign nationals also need to provide:
Valid asylum permit/visa
*Please note that different rules applies to members who are foreign nationals, as we cannot access any South African credit records for foreign nationals.
Each loan will attract a once off Loan Administration Fee. A minimum fee of R250 and a maximum fee of R2600 applies.
Every loan also carries a once off 3% bad debt provision fee. This fee is used an internal insurance of the GIG CFI Loan Book and used to absorb bad debts, once collateral has been exhausted.
Although the term limit is linked to how long a member has been actively saving (overall repayment limit of 7 years), the GIG CFI Board has instituted temporary rules in terms of maximum repaid periods linked to the size of Loans. This was done so that every member has a fair chance of being able to access the pool of available funds to finance loans.
+R300,000 loans 24 months max repayment term
R200 000 – R299 999 36 months max repayment term
R100 000 – R199 999 48 months max repayment term
R50 000 – R99 999 60 months max repayment term
Under R50,000 84 months max repayment term
© GIG Financial Services Co-Operative Ltd 2015/002508/24