4% interest rate for members of PNG Nambawan NSLS Credit and Savings Society
Members of the Nambawan Savings and Loans Society (NSLS) will receive a 4% lending rate on their savings accounts for fiscal 2020.
Chairman and CEO John Solok. said the 4% credit rate was a 3% increase over the 1% normally credited to members each year.
It comes after the NSLS recorded a turnover of K 6.7million last year, which is a 21% increase from 2019 with a net profit of K 2.38million.
Other highlights include 24% growth in net assets worth K12.2 million, the strongest membership growth of 26,633 – growth of 20.1% and 24% loan increase.
Solok said revenue increased because the NSLS looked at other sources of revenue besides traditional interest rates on customer loans.
“One of the things about savings and loans is that members help members.
“We don’t charge huge fees, if you send us a declining balance you have 1% interest on your loan, which is by financial standards the cheapest in the market,” Solok said.
He said it was about having the money to help members without putting too much pressure on their repayments.
“We, those with access to liquidity, are looking to increase their wealth, so we are looking at wise investments in short-term money markets,” Solok said.
He said the strategic move recently was to buy cheap blue investments like in Kina Bank.
Solok said their growth now depends on interest rates by increasing other investments to ensure they grow with a high return on their investment.
Exeprenuer Magazine / PNG today
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