Permanent Ref.

KF1
THE MAURITIUS CIVIL SERVICE MUTUAL AID ASSOCIATION LTD.
BRN: C10000071 KEY FACTS IN CONTRACTS (KFiC) AND OTHER INFORMATION - PERSONAL LOAN Ref : PLNI/02.02.23

You are kindly requested to read the following instructions before completing your loan application.
1.0 DOCUMENTS TO BE PRODUCED
1.1 The following documents should be submitted:
(a) Original & Photocopies of :
(i) National Identity Card (NIC) and Birth Certificates of applicant and guarantors (KYC record). Online Birth
Certificate is acceptable.

(ii) Your last payslip / pension slip. Downloaded payslip will only be accepted with official seal, name, signature, date and
post of signing officer.

(iii) Last payslips of guarantors. Downloaded payslip will only be accepted with official seal, name, signature, date and post of
signing officer.

(iv) Bank document showing account number and name of applicant, in case of any change.
(v) Bank statement showing name and address / Utility Bill (CEB or CWA or Mauritius Telecom) - not more than 3
months old of applicant and guarantor/s (If utility bill is not in name of applicant/guarantor/s, a written
confirmation and copy of NIC should be secured from the utility bill account holder) or any other document
showing relation (KYC record).
(b) Certificate from your department stating that you are not under report, not on leave without pay, not on prolonged sick
leave, not involved in a police case and medically fit (Valid for 4 weeks).
(c) Letter of undertaking (where applicable).
(d) Documentary evidence for (i) home loan purpose; or (ii) application of any loan as from Rs1.5M. (Written declaration)
(e) Letter for check-off to SICOM Ltd (applicable for parastatal bodies).

N.B : Save Time by avoiding the peak period from 27th to 3rd of the next month and peak hours from
10.30 hrs to 14.00 hrs.
2.0 LOAN AMOUNT AND MODE OF PAYMENT
2.1 The ceiling of all loans excluding Home Loan is capped at Rs7m (excluding higher end post employees who are in the
civil service). Loan will be based on the repayment capacity. Please refer to the loan table overleaf for details of
eligibility. The actual loan amount is based on eligibility and is not necessarily the same as the amount applied for. For
loan applications as from Rs1.5m, an email or a letter of confirmation from guarantors is required, and for all loan
applications of Rs3m and above, the loan contract shall be signed by the loanee and guarantors in presence of the
officers of the Association.
2.2 No Personal Loan ceiling is applicable for higher end post civil servants reckoning at least 10 years service and drawing a
monthly income of at least Rs 50,000. The loan is subject to 55% deduction limit and up to age of 65 years.
2.3 Applicants are notified that the existing loan balance would be set off automatically and the net amount would be
disbursed.
2.4 Loan proceeds will be directly credited to applicant’s bank account.
2.5 The applicant for a loan of Rs4m shall not have a past history of defaults and no arrears in loans (Mutual Aid and other
institutions).
2.6 The minimum loan application amount should not be less than Rs15,000.
The disbursement amount should not be less than Rs5,000.
2.7 Application should be submitted by loanee in person.
2.8 Allowances of a permanent nature may be considered for loan eligibility purposes.
3.0 LOAN PERIOD AND DEDUCTION
3.1 Loans can be refunded in a maximum period of 240 months depending on the age of the applicant
Note : About two months moratorium will be provided on loan repayment, thus the first deduction will be made
by end of the 2nd month. Consequently, the loan period will be extended accordingly and the interest
accrued during this period will be deferred and claimed after the maturity of the loan. This deferred
interest would be indicated in the periodic loan statement issued to clients.
3.2 In no case shall the total Mutual Aid deduction exceed 55% of the monthly eligible income /40% of total monthly income
of pensioners. However, this is not applicable to institutions where there is 50% restriction on salary deduction.

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4.0 GUARANTORS
4.1 Except for pensioners, applicants need to provide personal guarantors, provided the loan amount is fully covered.
Personal guarantors must be members of the Mutual Aid. Upon disbursement of the loan, both applicant and
guarantor(s) will be issued with a credit advice showing loan details.
4.1.1 Loanees have the option to provide up to 6 guarantors subject to the following:
Sn. Loan amount Minimum number of guarantor (s) For loan of Rs3m and above, guarantors
1 Up to Rs 1.0m One need to come and sign in person in the
2 ˃ Rs 1.0m ≤ Rs 2.0m Two presence of Officer of the Mutual Aid
3 ˃ Rs 2.0m ≤ Rs 3.0m Three Association.
4 ˃ Rs 3.0m Four

4.1.2 Guarantors must sign undertaking of acceptance if applicant is under report.

4.2 The following conditions shall apply if the loan is secured by a single guarantor:
4.2.1 In case the guarantor is a loanee, the net pay into bank of the guarantor excluding bonuses, travelling, overtime and
allowances other than rent should be at least equal to the monthly loan instalment of the loanee;
4.2.2 In case the guarantor is not a loanee, the net pay into bank excluding bonuses, travelling, overtime and allowances other
than rent should be at least twice the loan instalment of the loanee;
4.2.3 The guarantor should be eligible to at least 100% of the loan amount applied for by the loanee. However, where the
remuneration is not sufficient to cover for the repayment of the loan, the Association shall require the applicant for a second
eligible guarantor.
4.2.4 The guarantor should also sign an undertaking that he is agreeable to be sole guarantor;
4.3 The following conditions shall apply if the loan is secured by two guarantors:
4.3.1 The net pay into bank of each guarantor excluding bonuses, travelling, overtime and allowances other than rent should be
at least half of the monthly instalment of the loanee;
4.3.2 In case one guarantor is not a loanee, his/her net pay into bank excluding bonuses, travelling, overtime and allowances
other than rent should be at least equal to the monthly instalment of the loanee;
4.3.3 Each guarantor should be eligible to at least 50% of the loan amount applied for by the loanee.
4.3.4 In case of more than two guarantors the above conditions will differ accordingly.
4.3.5 Applicants with at least 25 years of service in the civil service can avail of a Concurrent MQL Loan (without personal
guarantee) up to Rs 1.0m at an interest rate of 11% p.a, subject to the following:
(i) Applicant’s repayment capacity
(ii) an undertaking that the gratuity payable by the Accountant General is pledged in favour of the Association.
(iii) repayment to statutory retirement age (maximum 240 months depending on age)
4.3.6 Guarantor(s) cannot opt out once the application has been processed.
4.4 GENERAL CONDITIONS
4.4.0 The Association reserves the right to make amendments to any of its loan policies and/or procedures at any point in
time. The Association furthermore reserves the right to apply such amendments to loans already approved and
granted.
4.4.1 The loan repayment period may not exceed the retirement age of a guarantor, unless the latter’s future pension is sufficient
to repay the loan in case of default payment.
4.4.2 The Association reserves the right to reject a guarantor after assessing the risk profile and to keep in abeyance the loan
application of an applicant who is in litigation with the Association until the final outcome of the case.
4.4.3 The attention of the guarantors are drawn to paragraph 2.1 of the loan contract. Guarantors should be fully aware of their
responsibilities when they guarantee a loan.
4.4.4 Guarantors can stand as surety for a total liability limit (loan balance) of Rs3m for monthly salary up to Rs50,000 and Rs4m
for those earning above Rs50,000 monthly. Guarantors shall not be more than 5 years older than loanees.
4.4.5 In case the applicant bears the same surname as any of the guarantors or in case both guarantors bear the same surname,
their relationship must be disclosed on the loan application form.
4.4.6 For pensioners, the rate of interest is set at 9.30 % p.a (effective 02.02.2023) .
4.4.7 A waiting period of at least six monthly payment is mandatory for the grant of a Mutual Aid Quick Loan following
disbursement of a Personal loan. However, this is not applicable for Civil Servants reckoning at least 5 years’
service.
4.4.8 Members have the option to secure the traditional Personal Loan with a collateralized security.
4.4.9 Approval of loan is subject to terms and conditions.

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5.0 NOTES :
5.1 Applicant and Guarantor/s must sign at part 2 of the application form and should write in their own handwriting in the
space provided at sections 2.0 and 2.1 of the application form the following : “Read and approved: good for the sum of
Rupees …… in principal to which shall be added the accrued interest.”
5.2 The following fees will be charged :
(1) the Mutual Solidarity Contribution (MSC) for the loan (Note : Please note that the solidarity contribution on
loan is non-refundable and is payable to offset the loan in case of death of loanee);
(2) the Processing Fee; (3) MCIB fee.
5.3 Application for a new loan can be made after 6 monthly payments subject to risk and repayment capacity assessment.
5.3a However, if the maximum eligible loan has not been reached, the renewal can be done the next month itself subject to
risk and repayment capacity assessment.
5.4 In case of default in payment on the part of a loanee, the total outstanding loan balance will in the first instance be
recovered from the salary of the guarantor(s). In the event that this is not possible, recovery will be effected by
judicial process.
5.5 Shareholders may download copies of the application form from our website: www.mcsmutualaid.mu
5.6 The Association reserves the right to reject a loan application after assessing the risk profile of the Applicant/Guarantor and
to keep in abeyance the loan application of an applicant who is in litigation with the Association until the final outcome of
the case.
5.7 There should not be any overwriting or use of correction fluid on the application form. However in case of
overwriting there must be signature. All photocopies must be clear; all signatures affixed must be identical to that on
the National Identity Card of bearer.
5.8 In case a borrower is proceeding on any overseas leave, he/she shall communicate in writing to the Association his/her
overseas address, prior to leaving the country. Non submission of such information would be a breach of the loan
contract/agreement.
5.9 In case borrower is abroad and the Standing Order Instruction has failed and no deduction can be effected from
guarantor’s salary, the matter will be treated as a case of defrauding the Association of its property. The Association will
proceed with legal action against the borrower and guarantor(s) via the Central Criminal Investigation Department
and Interpol. The Association will also inform the borrower’s employer or institution of the above matter with the
assistance of Embassies and Ministry of Home Affairs in the relevant countries.
5.10 Shareholders are informed that it is mandatory for the Association to make necessary enquiry from the Mauritius Credit
Information Bureau (MCIB) before approving, increasing or renewing any loan facilities and to provide the MCIB with
relevant information regarding the present loan.
5.11 According to Section 52A of the Bank of Mauritius Act, it is mandatory that the ‘Know Your Customer’ (KYC) records
of our members be submitted to the KYC Registry of the Bank of Mauritius.
5.12 Unsecured loans(U.L)-Quick Loan,Special Personal Loan and Emergency Loan
(i) For a new member, unsecured loan will not be provided at time of membership. New members must apply for
Personal loan (P.L) with guarantors first. After a period of at least 6 months loan repayment, loanee can apply for
U.L subject to existing conditions like no arrears, limit, etc.
(ii) For an existing member who has applied for a renewal P.L, U.L,oan will be granted based on the clean track
records of the loanee with no arrears in loan repayments, etc.This may be possible when the P.L amount is lower
based on guarantor submitted(salary/age), etc.
(iii) For an existing member who had a P.L but has already settled (before or at maturity), unsecured loan can be
provided based on the track record of the loanee with no arrears in loan repayment, at any point in time.
5.13 When a loan renewal is granted to a member, the first EMI of the loan renewal will be deducted after two months.
Consequently, the two instalments of the previous loan will be deducted from the capital balance of the new loan. For
example, if the new loan is granted in March, the first EMI will be demandable in May. However, the EMI for March and
April receivable for the previous loan will be deducted from the capital balance of the new loan.
5.14 For a loan buyback, the approval of a loan will be effective when a confirmation is received as to whether the amount due
to the other institution(s) has been settled.
5.15 A loan contract is valid when the proceeds of the loan have been credited to the account of the Applicant who is alive.
5.16 Your request will be resolved on the spot if this is possible. In case you are not satisfied, you may refer to the
‘Complaints Handling Policy and Procedures’ as available on www.mcsmutualaid.com
Further information may be obtained by phone as follows: 213-0200 (Queries on existing loan accounts) 212-4000
(General Information) 213 0333 (Complaints)

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6.0 RATE OF INTEREST

6.1 Rate of interest for Personal Loan is 9.05 % p.a for civil servants/Premium Non Governments and 9.30% p.a for non-
civil servants (excluding private sector employees).
6.2 The rate of interest is calculated daily based on the outstanding capital and is tagged to the Mutual Aid Base Rate (MBR).
The interest rate will be automatically adjusted in case of any percentage change in the said MBR. Consequently, the
loan maturity date may be increased or reduced to take into account fluctuations in interest rate during the loan period.
Please note that the monthly loan instalment will remain the same.
7.0 FEES
7.1 Applicants for loans will be required to pay a one off processing fee of 1 % on the loan amount together with Mutual
Solidarity Contribution (MSC) of 4.50 % - 5.50 % to write off the loan in case of death. The effective date of the MSC
is when the loan has been disbursed. Applicants will be charged Rs50 as Bank of Mauritius (MCIB) fee. These fees are
also applicable for loans secured by RSS, Deposits and Insurance Policies. The MSC to be applied depends on age as
follows:
SN. AGE MSC RATE - %
1 Up to 45 4.50
2 More than 45 up to 50 5.00
3 More than 50 5.50
8.0 LOAN ELIGIBILITY FOR PENSIONERS
(a) For pensioners aged more than 65 up to 70 years : Maximum loan of Rs1,000,000.
For pensioners above 70 Years : Maximum loan of Rs100,000.
(b) Loans are payable as follows:
SN AGE (YEARS) MAXIMUM REPAYMENT - PERIOD (YEARS)
1 60 10
2 61 9
3 62 8
4 63 7
5 64 6
6 65 and above 5
9.0 Trainees/student nurse / probationers are now eligible to become a member of the Mutual Aid Association and may
benefit from loan facilities. The following criteria will apply:
1. Appointment of the trainee / student nurse / probationer shall be made by, or under delegation of powers, from PSC or LGSC.
2. Loan amount shall not exceed 12 months salary and monthly instalment will be limited to 50% of monthly salary.
3. Loan must be repaid within 5 years of disbursement.
4. Security to be provided: At least one guarantor who is on a pensionable and permanent post or other securities
acceptable by the Association (e.g Fixed Deposit (FD), Retirement Savings Scheme (RSS), Life Assurance Policy
(LAP).
5. Documents as per 1.0 above.
10.0 INDICATIVE LOAN TABLE - Interest Rate 9.05 % p.a (effective 02.02.2023) (based on 55% deduction
EXCLUDING PENSIONERS / TRAINEES / NON-CIVIL SERVANTS).
MONTHLY
MAXIMUM LOAN MINIMUM MAXIMUM LOAN MINIMUM SALARY PER
MONTHLY INSTALMENT INSTALMENT
AMOUNT SALARY PER MONTH AMOUNT MONTH
240 MONTHS 240 MONTHS
Rs Rs Rs Rs Rs Rs
100,000 1,642 903 2,100,000 34,476 18,962
200,000 3,283 1,806 2,200,000 36,118 19,865
300,000 4,925 2,709 2,300,000 37,759 20,768
400,000 6,567 3,612 2,400,000 39,401 21,671
500,000 8,209 4,515 2,500,000 41,043 22,574
600,000 9,850 5,418 2,600,000 42,685 23,477
700,000 11,492 6,321 2,700,000 44,326 24,379
800,000 13,134 7,224 2,800,000 45,968 25,282
900,000 14,775 8,126 2,900,000 47,610 26,185
1,000,000 16,417 9,029 3,000,000 49,251 27,088
1,100,000 18,059 9,932 3,100,000 50,893 27,991
1,200,000 19,701 10,835 3,200,000 52,535 28,894
1,300,000 21,342 11,738 3,300,000 54,177 29,797
1,400,000 22,984 12,641 3,400,000 55,818 30,700
1,500,000 24,626 13,544 3,500,000 57,460 31,603
1,600,000 26,267 14,447 3,600,000 59,102 32,506
1,700,000 27,909 15,350 3,700,000 60,744 33,409
1,800,000 29,551 16,253 3,800,000 62,385 34,312
1,900,000 31,193 17,156 3,900,000 64,027 35,215
2,000,000 32,834 18,059 4,000,000 65,669 36,118
The above figures have been rounded off to the nearest rupee and actual figures may differ. TD/RB/02.02.23
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