VNPF Member Financial Services Ltd (MFSL)
Member Financial Services Ltd is a subsidiary company owned by VNPF and operates independently from the VNPF itself. It provides small loan services to the members of the fund basically to assist with the improvement of the social well-being and living standards of the members.
It commenced operations in March 2008 and despite fierce competition with the four commercial banks and other financial institutions it has grown in terms of attracting a large portion of VNPF members with a sizeable lending portfolio, is profitable and is continuing to meet its commitment to the members of the fund as stated above.
During the last three years there were some controls on the loan services to VNPF members. This was to ensure thatthose who are eligible to apply for a small loan are only considered if they borrow funds to meet specific needs such as education, Home improvements and Rural housing. However, with increasing demand from members, MFSL has opened up the lending sectors to allow for loans to other services. For many members of the fund this control measure on what you can and cannot apply for has enabled them to discuss their financial needs and ask questions which they would not normally ask the other financial institutions and commercial banks. It has also present an opportunity for MFSL staff to educate VNPF members about their hard earned savings, what a loan is and their responsibility as borrowers and most importantly what comes back to them as members when they borrow from VNPF Member Financial Services Ltd.
Our major challenge is to ensure that we safeguard the member’s investment account with VNPF and this has been a major focus on our part in educating VNPF members through our collaboration with Vanuatu Chamber of Commerce and other partners who provide basic financial literacy trainings to the members of the fund. We have seen some improvement but this will continue to present a challenge as we progress. It is important for the members of the fund to borrow responsibly to ensure that at their retirement age they still have that portion of their funds that is pledged as security for their small loans with MFSL in their investment accounts with the fund.
What you need to know before you apply for a micro loan with VNPF Member Financial Services Ltd:
• You must be a member of the fund – most preferably an active member
• Your total contributions with the fund must be more than vt150,000 in order for you to be eligible for a small loan
• Must be less than 54 years old
• Minimum loan amount is VT.25, 000 &Maximum is 85% of your investment account Balance.
• Interest rate is 12% on all our loans services
• All loans are short term - 3 years or less.
• Fees and charges is VT.9, 000 for loan processing fees and guarantee fees and this is to be paid up front. There is no other monthly fees and charges.