ANYONE under 70 years old with a loan from the Sugar Cane Growers Fund will automatically receive mortgage protection if the loan is not in default, says SCGF board chairman Ahemad Bhamji.
He explained that in the event of the borrower’s death or permanent disability, the loan of up to $50,000 would be paid off through Capital Insurance Ltd.
This coverage is also available for individuals with loans over $30,0000.
This was made effective as of August 1.
“This scheme will cost SCGF to the tune of half-a-million dollars,” he said.
“We are trying to manage the fund in a very systematic and prudent way despite various challenges within the industry.
“Our plan is not only loans but a complete financial package of loans, savings and insurance that is attractive and affordable.”
Mr Bhamji says the fund is looking at reducing the rate to below 4 per cent without government subsidy if cane production is good this season.
“Should the Government consider some subsidy, we will reduce further.
“There are challenging but exciting times ahead for us at SCGF and we are determined to do the best for the growers as we always put growers in the centre of our business.”
Mr Bhamji said the fund had also secured another grant from the Asian Development Bank of $US38,000 ($F86,134) that will improve services.
“We’ll be able to get online access to see and download your lease and mortgage copies.
“In addition, we will be signing an agreement with the National Development Bank in Papua New Guinea, introduced by the secretariat of the Pacific Community (SPC) and ADB consultant.”
