THE Board of the Solomon Islands National Provident Fund (SINPF) has set up a non-bank financial entity, which it says will help its active members borrow against their savings.
An advertisement announcing the set up of the newest financial institution in the country appeared in the Solomon Star last Thursday.
Curiously, the logo for the company – OUR FINANCE – Solomon Finance Ltd – is that of a LAKATOI – the Motuan name in Papua New Guinea for a canoe with sail.
“Our Finance has been set up by SINPF Board to provide loans and related financial services to the qualified active SINPF members to assist them build wealth for their future and that of their families, communities and of the Solomon Islands as a whole,” the announcement said.
The Company is also lending up to $100, 000 in personal loan with approval lending fee of $500. The interest rate is at 9.5 per cent per annum with a term of three years.
Our Finance is also providing education Loan of up to $20, 000 at 9.5 percent per annum. The loan term for this facility is one year with a default fee of two percent.
It is unclear why such a facility was created, but there are speculations that some private companies have been borrowing from the SINPF without members’ knowledge.
The facility is therefore created to protect the management and Board from being accused of engaging in lending Members’ funds without formal approval.
Solomon Star was unable to obtain comment from the SINPF Management on its new product.
By ALFRED SASAKO
Newsroom, Honiara
