Credit Union Annual Report 2021 V2 - Flipbook - Page 58
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2021
5. Mortgages and personal loans
The composition of loans to members is as follows:
2021
Mortgage loans
Personal loans
Total loans
$
Loan interest receivable
Total loans including interest receivable
Less: Provision for loan losses:
- Specific provision
- Expected credit loss
Total
$
226,605,706
97,149,706
323,755,412
2020
$
204,364,345
88,131,171
292,495,516
904,724
324,660,136
4,224,709
296,720,225
(1,171,536)
(259,643)
(1,431,179)
323,228,957
(1,942,799)
(506,238)
(2,449,037)
294,271,188
$
Term and interest rates
Generally, the maximum repayment period of mortgage loans is up to 35 years (2020: up to 35 years) and personal loans
is less than 10 years (2020: less than 10 years) and all assets held as security for such loans are located in the Cayman
Islands. Loans attract interest at rates which are fixed at the time of credit origination. For the year ended July 31, 2021,
the effective yield on the loan portfolio is 5.57% (2020: 6.34%).
Loans to related parties
All loans to employees and elected volunteers are subject to the same terms and conditions as those applicable to other
members of the Credit Union. Interest rates for employees and elected volunteers vary between 3.5% and 12% (2020:
3.5% and 12%).
Included in mortgage and personal loans are loans of $15,233,219 (2020: $12,995,155) to directors, employees and
committee members of the Credit Union (Note 19), of which the scheduled repayments on none of the loans were past
due at July 31, 2021 (2020: none).
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