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Name of the Organization : Director Public Service Management
Type of Facility : Public Officers Welfare Fund
Country : Botswana

Official Website : http://www.dpsm.gov.bw/

What is DPSM Public Officers Welfare Fund?

The Loan Policy has been established to guide the Management Committee and the members in granting, managing and collecting loans due for payment and writing off those proving to be un-collectable.

Related / Similar Facility : Ministry of Labour Botswana Residence Permit Application

DPSM Public Officers Welfare Fund Administrator is charged with the responsibility to establish administrative policies including the loan policy. The policies are established in order to protect the interest of members and guide the Fund on its operations.

Aim Of The Fund :
** Main aim of the Fund is to encourage all public servants to save.
** Offer public servants a medium of investment to grow their savings.
** Offer members loans at reasonable interest rates.

Fund Documents :
** Botswana Public officers Welfare Provident Fund Loan Policy 2012
** Loan Application Form
** New Membership Application Form

NB : All the above mentioned documents can also be accessed on the government portal ie www.gov.bw

Types of DPSM Loans

1.Petty Cash
2. Emergency
3. Ordinary

Purposes of DPSM Loans

The DPSM Fund shall offer loans to its members under the following categories but not limited to :
1. Agriculture
2. Commercial
3. Industrial
4. Domestic uses

The purpose under each category will be stated in the loan application form a member is required to complete.

Lending Criteria :
The Credit Committee is expected to observe the following criteria when assessing loan applications :

Lending Ratio :
The lending ratio for loans shall be 1 :2 – twice member’s savings.

Character :
This refers to the member’s loyalty and activities in the Fund.

Capacity :
A member’s willingness to acquire a loan must also be based on his/her ability to pay the installment due during the life of the loan. A member’s installment (Principal + Interest) shall be determined by the net savings available at the time of application.

Loans per Member :
There shall be provision for top up once the repayment period has reached six months or half the loan has been repaid. The top up should still be within the lending ratio.

Security :
Offered in respect of ordinary loans that are in excess of P100 000.

Loan Structure :
The Fund shall offer and maintain the following loan structure :

Petty Cash Loans :
Every member is entitled to a petty cash loan amount from of P500 to a maximum of P1, 500.

Emergency Loan :
Emergency loans shall be in excess of P1,600.00 to a maximum of P10, 000 (Ten Thousand Pula)

Ordinary Loans :
Every member will be entitled to loans up to a maximum of P250, 000.00 depending on the savings and shall need approval of the Authorized trustees.

All loans shall be approved by Authorized trustees

DPSM Repayment Terms

Ordinary Loans :
All ordinary loans up to P250, 000.00 shall be provided with security for every qualifying member up to a period of 6 years of repayment.

Security will be required for ordinary loans in excess of P100,000.00

Emergency Loans :
Emergency loans will cover but not limited to :
** Court Fees
** Medical Expenses
** School Fees
** Repair Costs
** ** Bereavement
** Domestic Uses
** An emergency loan is repayable in twelve (12) month.

Petty Cash Loans :
Petty cash loans are strictly payable within one (1) months

Defaulters :
Defaulters shall be subject to three (3) Months suspension from this loan facility.

If a member defaults, the loan amount plus interest shall then be recovered from savings at the end of 6 months period. A fine of 10% of the outstanding value of the loan shall also be charged to savings.

Eligibility of DPSM Loans

Eligibility For Loans :
A new member will only be eligible for a loan if savings have been accumulated up to twelve(12) months period after joining the Fund subject to Clause 6.0

Interest Rate And Adminstrative Fees :
The Fund shall charge ten percent (10%) interest per annum on Ordinary Loans

The Fund shall charge ten percent (10%) interest per annum on emergency loans calculated subject to a reducing balance method.

Petty cash loans shall be charged 5% interest.

Insurance shall be charged at the rate of 1.5% of the approved loan amount. This amount must be deducted from the loan so acquired.

Loan Application And Approval :
The applicant and the Authorized Trustees should ensure that all loan applications are filled and signed by the borrower stating the following :

Applicant’s membership particulars
** Loan Purpose
** Loan amount
** Outstanding debts to the Fund, if there are any
** Latest advice slip

Relevant legal documents in case of movable and immovable security for attachment including value of security, ownership, state and location of property.( where applicable)