Frequently Asked Questions
The Mining & Petroleum Savings & Loan Society Ltd (MPSL) was established in 1989 as Ok Tedi Savings & Loan Society, and later changed its name to MPSL. Through the savings & loan vehicle, MPSL continues to provide a savings facility for our members for their immediate financial commitments, from school fees to holiday expenses, and many more.
Any person, who is working in the Mining, Petroleum, Oil and Gas sectors in PNG. Membership is also open to other sector employees within PNG.
No. Savings with MPSL is not compulsory. It is a voluntary savings scheme that gives members flexibility to access savings to fulfil their urgent financial commitments such as school fees, customary obligations, holiday expenses and funeral expenses.
MPSL offers three savings accounts. The accounts are:
- School Fee Savings – Can only be used for education related expenses
- General Savings – For any other purposes
- Christmas Savings – Enables savings for the festive season in November, December and January
- Kids Savings – to encourage a savings culture for the young ones
- Family Savings – joint accounts for families who wants to do savings
- Employment bonus savings – competitive interest will be paid for this savings account.
The purposes of these accounts are to:
Encourage members to save regularly
Enable members to obtain larger loans when required
- Minimum savings of K10.00 per deposit (whether paid on fortnightly or monthly basis).
- A minimum balance of K50.00 must remain always in the account.
- Withdrawals are allowed only for education related purposes.
- Minimum savings of K20.00 per deposit (whether paid fortnightly or monthly).
- Minimum withdrawal of K200.00 at any one time.
- Members may withdraw up to 50 % of their net total savings balance in their General Savings Account and only one withdrawal per month is allowed.
- A member must save for a continuous period of three months or more and have a minimum balance of K200.00 before a loan is allowed.
- Minimum savings of K10.00 per deposit (whether paid fortnightly or monthly).
- Withdrawals are only allowed in November, December and January of each year.
- A minimum balance of K20.00 must remain always in the account.
- Savings cannot be used as security against loans.
- Minimum savings of K50.00 per deposit
- Withdrawals are not allowed.
- This savings account will enable you to apply for a loan at 1:2 ratio
- Interest for this particular savings account is paid monthly
Yes. The Society pays interest on savings based on the surplus funds (profit) made each year.
Yes. Under the new amended Savings & Loans Act 2005, you can become a dual member of any existing societies.
- Members may withdraw up to 50% of their net total savings balance in their General Savings Account. Only one withdrawal per month is allowed.
- The minimum amount that a member shall withdraw is K200.00. No amount less than K200.00 shall be permitted for withdrawal.
- A member with a loan balance that exceeds 50% of their total general saving account, shall not be allowed any withdrawal of their savings.
- A refund of savings or a full exit is due to the member three months after the last contribution is received. An exit fee is applicable.
We give you peace of mind and comfort with the way in which we manage and administer the affairs and operations of the Society. Commitment to good governance, prudential management and customer-oriented service is what we are known to deliver.
- Additional savings outside of regular deductions can be accepted from members.
- The member must inform MPSL of the account they wish to deposit additional savings to.
If additional savings are deposited into the General Savings Account for the purpose of obtaining a loan, the loan request shall be considered seven days after making the additional deposit.
No cash deposit is allowed. All deposits must be paid by cheque, by direct bank deposit or EFTPOS facility
Yes. The maximum lending ratio as approved by the Registrar of Savings and Loan is 1:2. If you have K1, 000 in your savings account and has an active Loan Security Deposit account, you are allowed to borrow a maximum of K2, 000.00 provided normal loan requirements are met. The 1:2 loan ratio is now available for all purposes.
Lending Guidelines Loan Eligibility
A member is eligible for a loan if he/she:
- Has had a continuous payroll deduction contribution for a minimum period of 3 months
- Has a minimum of K200.00 in their savings account
- Is honest and of good character and has had no prior conviction for fraud or theft
- Has a good credit rating.
Any 1:2 loans of K100, 000.00 and above requires MPSL Board approval.
Loan Ratios and Terms
The Society can grant loans for a wide variety of reasons such as:
|Purpose||Maximum Ratio||Maximum Term|
|1. Family Bereavement (Airfares, Funeral Expenses)||1:2||36 months|
|2. Medical Expenses||1:2||36 months|
|3. School Fees||1:2||36 months|
|4. Holiday Expenses||1:2||36 months|
|5. Purchase of Furniture & Household Items||1:2||36 months|
|6. Purchase of Motor Vehicles||1:2||36 months|
|7. Investments (Extension or New)||1:2||36 months|
|8. Pay Bride Price||1:2||36 months|
|9. Pay Compensation||1:2||36 months|
|10. Personal Expenses||1:2||36 months|
|11. Legal Expenses||1:2||36 months|
|12. Purchase of Land & Building||1:2||48 months|
|13. Purchase of Dinghy, Outboard Motor & Accessories||1:2||36 months|
|14. Sports & Recreation||1:2||36 months|
|15. Traveling Expenses||1:2||36 months|
|16. Motor Vehicle Registration/Insurance & Maintenance||1:2||36 months|
|17. Repay Debts||1:2||36 months|
|18. Other loan purposes apart from the above||1:2||36 months|
Maximum Loan: The maximum loan the Society may grant to a member is limited to twice their total accumulated savings at any one time, taking into account any existing loans, fees and charges that is outstanding to the members account.
Minimum Loan: The minimum loan that may be granted to a member is K200.00. A member with a loan balance that exceeds 50% of their total general saving account, shall not be allowed any withdrawal of savings.
Additional loans may be granted to a member
(a) If a members’ total current savings fully secures the aggregate sum of the loan required.
(b) No member shall be granted more than one (1) additional loan per month.
(c) 50% of the recent loan has to be repaid before an additional loan is granted.
Interest is charged at 1% per calendar month on the unpaid balance on all existing and current loan accounts.
All loans must strictly adhere to the approved loan repayment schedule.
Any interest rate in excess of 1% per month on the unpaid balance may be charged subject to the approval of the Registrar.
Loan priority shall be considered on a first come first served basis and availability of liquid funds.
- K20.00 fee for General loans (L1)
- K30.00 for Housing loans (L2)
- K2.00 fee for new membership
- 1% fee charged on the withdrawal amount for all withdrawals