4% Interest Rate for PNG Nambawan Savings and Loans Socieity NSLS Members

The Nambawan Savings and Loans Society (NSLS) members will receive a 4% crediting rate into their savings accounts for the 2020 financial year.

Chief Executive officer John Solok. said the 4% crediting rate represented a 3% increase from the normal 1% credited to members annually.

This comes after the NSLS recorded a K6.7 million revenue last year – representing a 21% increase from 2019 with a K2.38 million net profit.

Other high points include a 24% growth in net asset worth K12.2 million, the highest membership growth of 26,633 – a 20.1% growth, and an increase in loans by 24%.

Solok said revenue increased because the NSLS looked at other revenue streams apart from the traditional interest rates on loans to customers.

“One of the things about savings and loans is about members helping members.

“We don’t do huge charges, if you go to us on a reducing balance, you have a 1% interest on your loan which is by financial standards the cheapest in the market,” said Solok.

He said it’s all about having the cash to help members without applying too much stress on them on their repayments.

“We those access cash, we look at growing their wealth so we look at wise investments on short money markets,” said Solok.

He said the strategic move recently was towards buying blue cheap investments as in Kina Bank.

Solok said their growth is now dependent on interest rates by growing other investments to make sure that they are growing at a high return on investment.

Exeprenuer Magazine / PNG Today

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