Contracts do not hinder approval of loans: Minam
February 8, 2019 7:26 am
The Fiji Association of Banks has reiterated that contracts do not hinder anyone’s loan being granted by the banks.
During the Association’s submission to the Standing Committee on Economic Affairs on the Reserve Bank of Fiji 2017, 2018 Annual Report, it was clarified that majority of Fijians are on contracts therefore, banks do not see contract terms of any individual.
This issue was raised by committee member Ro Filipe Tuisawau during the submission.
“One year contract or five years, the difficulty of getting loans for those on those contracts because of the requirements of the banks.”
Association member, Saud Minam says contracts has nothing to do with loan approvals.
“I understand you’re talking about civil servants who are working on contract basis. If they are rejected, they’re not rejected because of their contract, they are being rejected because of other reasons.”
Association president, Rakesh Ram says that it’s a different case altogether if expatriates are involved.
“Contract becomes more relevant for expatriate staff because they are here on short term basis. They also want to buy houses, cars but once they finish their contracts, they have to back to their country.”
Minam has clarified that in order for a loan to be granted, you need to show you can pay your loan, have a good track record, no criminal record and must meet the internal requirement of the bank.