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Welfare Services

About Loan Program

Q: I have taken out a loan (general) and would like to know how long it would take for a change in the rate to be reflected in the amount of my monthly repayments. Also, will I be notified when there is a change in the rate?

A: So long as the Rate on Deposits remains 3.75% or less, a change in that rate will be reflected in the repayment amount as the Special Rate from the first of the month, which is three months from that date. For example, if there is a change in the rate on the 15th of March the new Special Rate will take effect on the first of June and the amount of repayment will change starting that month.If the repayment amount has changed, you will be informed of the breakdown of the next 5 years’ repayment through the “Repayment Statement (Form 5)” that is sent to you through the member institution.

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Q: I have taken out a general loan as a member that I am currently repaying monthly. I would like to make another purchase, can I take out another general loan for that purpose?

A: No, you cannot take out more than one loan of the same type. However, you can choose to repay the outstanding balance of the current loan with interest, through the voluntary repayment program and then apply for a new loan, or apply for a new loan in the form of “refinancing” by remitting the amount of the new loan from which the outstanding balance of the current loan is subtracted.

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Q: I would like to repay part of the loan I have taken out as a lump sum through the voluntary repayment program. What is the procedure I should follow? I would also like to know whether paying back part of the loan will result in a reduction in my monthly repayment amount?

A: To pay back part of the loan through the voluntary repayment program, please apply by filling in the amount you would like to repay and submitting the Voluntary Loan Repayment Program / Withdrawal from Group Credit Life Insurance Plan Application. The Private School Association will sent the “Loan Repayment (voluntary / withdrawal) Notification and the payment handling form to the member institution. Use the payment handling form to deposit the money within the prescribed period.

Please note that if partial voluntary repayments are made, the total number of repayments will decrease. The interest which would have occurred during the shortened repayment period will be subtracted, but the amount of the monthly repayment will not change.

Also, if a 6 month repayment schedule is combined with the voluntary repayment program, the repayment of the principal of the 6 month repayment schedule needs to be prioritized.

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