Credit union lowers interest rate on loans |30 March 2010

This was said yesterday at the union’s office on Huteau Lane, Victoria, by chief executive Louis Shamhong during a visit by a team of officials from the Ministry of Finance.

The delegation, led by Minister for Finance Danny Faure, also included principal secretary Ahmed Afif and technical adviser Rupert Simeon.

The visit was in line with the minister’s plans to visit various workplaces, both public and private, to have talks, locate weaknesses, see areas for improvement and initiate benefits for consumers.
 
The delegation was taken on a tour of the cooperative’s various offices by Mr Shamhong and the chairman of the board of directors, Selby Dora.

The finance team had a short meeting with the credit union management, and Mr Afif said they discussed the costs of running the operation, the challenges they meet with clients, the cooperative’s plans for the future, and how the ministry can help them.

The Seychelles Credit Union has been operating here for the past 40 years and has 11,180 members. Clients can open an account with a 2.5% interest rate paid on their savings.

Members are required to buy at least one share of R100, which attracts an annual dividend. Loans are granted for various purposes, with a 25% cash collateral required and a payback period of up to 10 years.
 
The interest rate cut was finalised two weeks ago, and Mr Shamhong said it is possible it could be revised after three or four months.