Cape Vars Credit Union cautions members

The University of Cape Coast Cooperative Credit Union has warned its members to be wary of financial institutions that lure them with enticingly huge loans.
It noted that many of its members had fallen prey to banks and private "shylocks" offering huge sums of loans.

The Chairman of the Board of Directors of the Credit Union, Mr Napoleon Ankrah, said even though the union’s loans were more competitive, some of its members readily fall for the attractions and contract huge sums of loans with very high interest rates. He was addressing the 18th Annual General Meeting of the Credit Union last Friday. He read the report for the year ending June 30, 2012.

The situation he noted had left some members  with serious financial problems.

Mr Ankrah said while the board was embarking on a series of educational programmes on the problem.He added that  it was necessary for members to seek advice from the office,anytime they intended to take financial decision that affected their savings and commitment to the credit union.

He said the union also faced serious challenges of frequent savings withdrawals.

He said the management of the  union had therefore decided to increase interest on savings of members who do not withdraw their savings for a stipulated period to encourage savings.

Total assets of the union increased from  GH¢5,096,104.26  for the year ending June 30, 2011, to GH¢6,296,167.16 for the year ending June 30, 2012. Members shares also increased from  GH¢397,139.87  to GH¢552,259.82 over the same period.

The  board recommended  a dividend of 20 per cent for the year ending June 30, 2012.

The Chairperson of the Union's Loan Committee, Mr John Crentsil, said a total of GH¢1,361,982 was given out as  loans to support members pay school fees, build and establish businesses.

He urged members to comply with the 75 percent repayment before applying for another loan.

By Shirley Asiedu-Addo