We often hear rumours and misconceptions about Police Co-op from officers when we go to the various divisions for our membership recruitment talks, or when members drop by our office for enquiries. Rather than depending on hearsay from your friends and colleagues, let us take this chance during this magical festive season to bust some myths!

Loans

Myth #1
I need a guarantor in order to take up a loan in Police Co-op.

Busted:
As long as your loan is within your credit limit – 6 times of your monthly income for Ordinary members and 4 times of your monthly income for Associate members, a guarantor is not required.

An exception is in the case where the quantum of your loan far exceeds your credit limit and/or repayment period of 60 months. We will then consider your appeal for an exceptional unsecured loan only if you have the support of guarantor(s).

 

Myth #2
Police Co-op should loan me any amount that I request for, and not ask so many questions during my loan application.

Busted:
We aim to assist all our members to the best of our abilities. However, we do not encourage taking up a loan for frivolous spending or extravagant life-style habits and products. We will assess your spending habits, and advise expenditure cut-backs accordingly. We are also governed by rules set by Ministry of Finance, which we may only deduct up to half of a member’s salary (including CPF deductions) for contributions towards their savings and loans schemes. Therefore, the loan amount approved may not be the exact amount applied for.

 

Myth #3
I can hide the total amount of my debt from Police Co-op, revealing only what I think they need to know or only for the amount of loan which I am requesting for.

Busted:
In order to assist a member to achieve a good financial reputation, we would have to be aware of the member’s debts in totality. Our loans officers will conduct their own investigation on every loan application using various financial checklists and searches which will reflect the member’s financial history and current credit transactions.

Approval of the loan may be delayed or denied if the initial statement given by the member is found to be false or incomplete.

 

Myth #4
I can take up a loan immediately after I submit my application for membership.

Busted:
Payment for first deduction (obligatory dues) from the member must be received by Police Co-op for membership to be effective. The first contribution will be deducted from the member’s pay or GIRO account 2 months after submission of the complete set of application documents. Therefore, you may only take up a loan with us 3 months after the membership application.

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Myth #5
I can only take up a loan for medical, education or renovation purposes.

Busted:
Members come to Police Co-op to take up a loan for a myriad of reasons. Here are some of the common ones:
a) Wedding preparations, banquet, dowry and honeymoon;
b) Financial hardship due to unforeseen circumstances (for eg, accidents to property or family members);
c) Bringing family members to Hajj for their pilgrimage;
d) Temporary bridging loan (for eg, for a property or vehicle);
e) Clearing of outstanding credit card debts, outstanding overdrafts, personal loans with banks and licensed or unlicensed moneylenders;
g) Clearing of outstanding utility, mobile, town council bills and parking fines; and/or
h) Tuition or school fee payments for their family members.

There are a lot more reasons why members may need to take up a loan. While we are not encouraging members to take up loans unnecessarily, we would like to highlight the point that members should make their choices wisely and approach Police Co-op early if the need for a loan arises.

 

Savings and Membership

Myth #1
I know that one of the withdrawal criteria related to the Subscription Savings account is that I have to fulfill 5 years of membership. After saving for 5 years, I can withdraw as many times as I want to from the account.

Busted:
Police Co-op designed this compulsory savings account to facilitate and encourage long-term savings so that members will have a lump sum of cash stashed away, to be used in times of need. This will reduce the possibilities of the member having to take up loans. In order for members to fully benefit from the scheme, we do not encourage frequent or frivolous withdrawals from this account. This is why we have the following criteria in place to discourage withdrawals:
a) You have to be a member for at least 5 years before you may withdraw money from this account;
b) You may withdraw 4 times from this account without any charges, in your entire membership period. A $20 administrative charge will apply for subsequent withdrawals;
c) You must have no outstanding loans with Police Co-op at the point of withdrawal; and
d) A minimum account balance of $500 has to be maintained after withdrawal.

 

Myth #2
Only regulars from the Singapore Police Force may join Police Co-op as a member.

Busted:
Historically, The Singapore Police Co-operative Society was founded to assist only police officers regarding their financial needs. However, over the decades, many officers were seconded to or joined other sister organisations. Therefore, we have included employees (including civilian staff) from the following organisations to be eligible for membership:

Ordinary Membership • Ministry of Home Affairs (MHA)
• Casino Regulatory Authority (CRA)
• AETOS & its groups of companies
• Attorney-General’s Chambers (AGC)
• CISCO & its groups of companies
• Corrupt Practices Investigation Bureau (CPIB)
• Organizations which have Police Co-op representation on the Board of Directors

Associate Membership
• Exisiting Ordinary members who have resigned or retired from the above organisations
• NSmen with MHA
• Teachers associated with NPCC, members and former members of NPCC
• VSC Officers

If you have any questions you would like us to clarify about Police Co-op. please do not hesitate to write in to us atenquiry@policecoop.org.sg. Members with questions chosen for publication in future issues of Police Co-operator will be rewarded with $10 NTUC vouchers.

For more details on our loans and savings schemes, please refer to /category/service/loans-schemes/ .