Credit Committee

Responsibilities of Credit Committee

Credit Committee is elected by the general membership and has the following responsibilities:

• Implementing and ensuring the implementation of the approved loan policy;
• Providing prudent oversight of the loans portfolio;
• Granting loans subject to the loans policy of the credit union.
• Making recommendations to the Board in respect to loan policy changes.
• Making all loan approval decision only after being able to answer the following 3 questions from the loan application:
  1. Will the member pay? Character and pattern of stability
  2. Can the member pay? Debt service ratio; net worth, conditions of economy and employment
  3. Can we make the member pay? Collateral and other security
• Evaluating its work by analysing the delinquency report.
• Submitting a monthly report to the Board.
• Submitting an annual report on loans, and on the loan portfolio quality and trends, to the annual meeting of the credit union.
• Performing such duties as may be prescribed under the Act, the Regulations and the bye-laws of the credit union.

Approval of loans

The Board shall determine the terms and conditions under which the Credit Committee shall approve loans to members.

The Credit Committee may, upon such terms and conditions as the Board may specify, authorise the manager, loans officer or other employees of the credit union to approve loans to members.

The responsibilities and duties of any person authorised to approve loans under subsection (2) are concurrent with the responsibilities and duties of the Credit Committee.