Co-operative Credit Union Regulations, 2015 (L.I. 2225)
Regulation 18: Loans
(1) A Co-operative Credit Union shall grant loans in compliance with these Regulations, the policy of the Co-operative Credit Union and the Financial Standards.
(2) The Board of Directors of a Co-operative Credit Union shall, in writing, establish policies for the grant of loans. including
(a) the criteria for the grant of the loan;
(b) the conditions for the repayment of the loan;
(c) the maximum amount of money which may be granted as a loan; and
(d) the forms for security for loans.
(3) Subject to the by-laws of a Co-operative Credit Union, a Co-operative Credit Union shall not grant a loan unless
(a) the loan is executed under a formal contract in writing; and
(b) the loan is secured or guaranteed.
(4) A Co-operative Credit Union shall not grant to a member of that Co-operative Credit Union, a loan which is in excess of ten percent of the assets of the Co-operative Credit Union.
(5) A Co-operative Credit Union may grant a loan on the security of its own shares.
(6) A Co-operative Credit Union may
(a) create a charge on the shares, deposits, accrued dividends and interest of a member or a former member in respect of a debt due to the Co-operative Credit Union; and
(b) use the amount of money credited to the account of a member or former member to offset any debt owed to the Co-operative Credit Union.
(7) Subject to a prior claim by the Government and any claim in respect of rent, a debt owed by a member or a former member to a Co-operative Credit Union is the first charge on
(a) crops or other agricultural produce raised in whole or in part by means of a loan obtained from the Co-operative Credit Union; or
(b) cattle, fodder, agricultural or industrial implements or raw materials for manufacture, stores, inventory or stock for sale purchased in whole or in part by way of a loan obtained from the Co-operative Credit Union.
(8) This regulation does not affect the claim of a bonafide purchaser or transferee for value without notice of the claim of the Co-operative Credit Union.
(9) A Co-operative Credit Union may charge different rates of interest on loans taking into account
(a) the risk involved in the business for which the loan is granted;
(b) the amount of money involved; .
(c) the period for repayment of the loan;
(d) the security for the loan; or
(e) any other factors that the Co-operative Credit Union considers relevant to the repayment of the loan.
(10) For purposes of this regulation, a loan is not an investment.
(11) A Co-operative Credit Union that contravenes subregulation (1), (2), (3), or (4) commits an offence and is liable on summary conviction to a fine of not less than one hundred penalty units and not more than five hundred penalty units.
Subject : Co-operative credit unions
Procedure to Follow
Not Avaiable
Responsible Institution
28th February Road, Finance Drv, Accra
- Email: info@mofep.gov.gh
- Website: www.mofep.gov.gh
- GPS: GA-144-2024
- Telephone: +233 302 747 197
Relevant Forms to Download
Not Available
Online System
Link Unavailable
Fees/ charges
Not Avaiable
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