Loan conditions and repayment examples

Annual interest rate (APR)

The financial institutions we work with offer a maximum annual interest rate of 2%.

Example of repayment

A loan of PKG 700 with 8 payments in a fortnight of PKG 153.41.

This information is purely descriptive and assumes that the withdrawal made is repaid in full according to the agreed repayment schedule, with no further withdrawals or re-borrowing being made until the loan is repaid in full.

The example above assumes a weekly membership fee, which must be paid by the customer for as long as there is a balance due on the loan.

The amount of the membership fee may change at any time and PNG Finance reserves the right to change the membership fee, its allocation, calculation and the terms and conditions of any new loan granted.

The above example does not include administration fees, deferral fees, withdrawal fees refused by your financial institution, re-borrowing fees, maintenance fees or any other fees that may be imposed in the event of default or your management and use of your loan.

Implication of non-payment

NSF: A fee of forty euros (40 PGK) will be charged for NSF cheques and will also be charged for NSF pre-authorised payments. Your financial institution will also charge you an NSF fee for any missed payment.

Postponement of payment: If the debtor wishes to postpone a payment to a date later than the date agreed in the original agreement, an administration fee of 40 PGK will be charged. In order to defer a payment, the debtor must inform the lender at least 72 working hours before the collection date.

Other services and conditions

Renewal: loans are not renewed automatically. Loan renewals can only be made after the customer has submitted an application and it has been approved by our company.

Amortization schedule: Any initial drawdown on your loan will be amortized according to an equal and consecutive payment schedule allowing full repayment of amounts due over periods ranging from six months to thirty-five years.

Collection procedure and credit rating

Our company complies with European and American laws, regulations and legal standards. If a particular situation arises during your repayment period, our collection department will draw up a repayment agreement with you based on your situation. If the debtor defaults on any of the repayments provided for in this contract, the creditor may demand full payment of the outstanding balance, capital, interest and costs. All judicial and extra-judicial costs that may reasonably be incurred by the creditor as a result of the debtor’s default on a contract shall be claimed from and reimbursed to the creditor by the debtor.

In the event that no payment agreement is possible between the debtor and the creditor, the creditor may assign the file to a collection agency, which may affect the debtor’s credit rating.