NSLS lends K41 million in Q1 2022

0

BY MAXINE KAMUS

Nambawan Savings and Loan Society’s total loan portfolio in the first quarter of 2022 is approximately K41 million and is expected to grow by more than 20% year-over-year in the short to medium term.

NSL said that with the introduction of its 1:2 loan and the planned introduction of 1:5 later this year, the loan portfolio will certainly grow faster than the current rate.

“NSLS’s move into a more ‘unsecured lending’ space carries its own risks and therefore proper verification will apply to 1:2 and 1:5 lending in the interests of exposure management to credit risk,” the company said.

NSLS said that currently the fully secured 1:1 loan is the main loan product taken out by its members and accounts for more than 90% of total loans.

The company said that since launching the 1:2 lending product in mid-2021, NSLS is seeing more movement towards 1:2 lending.

“We currently have over 31,000 members and have grown over the past two years at a rate of over 18% year over year.

“We believe we are currently the fastest growing savings and loans; our excellent services including 24 hour turnaround time and lowest loan interest rates are the main compelling reasons why our membership is growing.

“Both loans include the 1:1 offered at the lowest interest rate of 1% and the 1:2 offered at the interest rate of 1.25%.

“Many ‘eligible’ members can now borrow twice their savings; many to refinance their loans with other high-interest loan sharks.

The company said that by the end of this year, it will further expand its loan offering to eligible member 1:5 loans and the 1:5 will be for both payroll eligible members and eligible members. MSMEs.

“We encourage many micro, small and medium enterprises in PNG to consider becoming members of NSLS to be able to access this 1:5 loan offer for their working capital or asset financing needs.

“NSLS will offer 1:5 at the lowest interest rate compared to loan sharks and commercial banks,” the company said.

Share.

Comments are closed.