Liberia Finance & Trust Corporation credit union

---

 Liberia Finance & Trust Corporation launched its Credit Union, a community and member lending institution dedicated to providing exceptional service and value to our members. Our commitment is reflected in our tailored community and member saving and loan plans and our straightforward approach to offering competitive low-cost and low-risk loans to our members. Our immediate objective is to fortify the foundation of the LFTC Credit Union through active membership engagement and robust savings accumulation. 

What sets the LFTC Credit Union apart is our ability to unite both the diaspora and local Liberians in a collaborative effort to deliver meaningful financial lending solutions.  We cordially invite you to become a member and, more importantly, to be an integral part of a remarkable movement: Diaspora Africans and Liberians joining forces, united by a shared dedication to impactful service, innovative financial solutions, and strict adherence to regulatory standards, in accordance with the Cooperative Development Agency (CDA), the Central Bank of Liberia (CBL) and, the Liberia Credit Union National Association (LCUNA).

Become a member, save with us, and help spread the word. To be a member click here.

WHAT YOU NEED TO KNOW ABOUT LFTC Credit Union

1. Our LFTC Credit Union funds are presently held with EcoBank Liberia Limited where we have an established banking custodian relationship. LFTC Credit Union is a non-bank financial institution not licensed to conduct depository banking business.  All member savings and funds are maintained presently in our EcoBank Liberia's account at this time.  
2. EcoBank Liberia is the leading licensed commercial bank in Liberia and has been operating in Liberia since 1999. This custodial relationship allows us to facilitate our banking transactions and reach members in broader areas. 
3. What sets the LFTC Credit Union apart is our ability to unite both the diaspora and local Liberians in a collaborative effort to deliver meaningful financial lending solutions. Whether you are here or abroad, we ensure that the currency you save in is the currency you receive—a seamless financial experience.
4. Liberia Finance & Trust Corporation launched its Credit Union, a community and member lending institution dedicated to providing exceptional service and value to our members. Our commitment is reflected in our tailored community and member saving and loan plans and our straightforward approach to offering competitive low-cost and low-risk loans to our members.
5. Our lending process is based on your savings and equity. At the end of the one-year cycle, the surplus earned will be distributed to eligible members. This surplus can be used to increase your savings or to purchase more equity. 
6. We charge 2% for saving withdrawals. We are able to fill members’ requests for funds in less than 24 hours depending on the way our members want to receive their disbursement.  Our credit union uses reputable money transfer and mobile payment services with a good reputation and tried and tested processes. These money transfer systems make it quicker to get and receive money and some charge a fee. 
7. We are thoroughly trained in maintaining member confidentiality. Our system ensures that member information is not shared with unauthorized personnel. We also ensure that members’ information is never left unsecured.
8. Equity/Share Ownership: We encourage our members to purchase shares in the credit union. This investment grants you voting rights and enables you to benefit more significantly from the surplus. Your annual return is calculated based on your equity ownership.
9. After purchasing your first compulsory share, you have three months to acquire additional shares. If you wish to purchase more shares after this period, you will need to wait until after the annual surplus disbursement. We will open a limited share-buying period, allowing members to acquire additional shares. The maximum number of shares one can own is ten.
10. Annual Disbursement:  Disbursement will be done annually. To partake in the annual surplus a member is required to own at least one share. 
11. Savings: We encourage members to save, providing them with additional sources for borrowing.
12. Loans: We offer loans up to USD 2,000 or more, depending on your available savings and shares.
13. Membership Requirements: Own a minimum of one share to partake in surplus, save consistently, pay annual dues, pay back what you owe, and be in good societal standing.
14. Case for Membership: We operate for service, not profit. As a member, you share in the surplus at the end of the year. Unlike for-profit lending institutions, we distribute a portion of our surplus to members. Additionally, we offer competitive lending rates.
15. We have set an ambitious target of welcoming 400 members and amassing $50,000.00 in savings and equity.
16. Surplus (profit) Allocation: We allocate 65% to members, 20% Operation Expense, 10% Capital Reserve, 5% Board of Directors.
17. Revenue (profit) Allocation: We disburse 20% of revenue generated from the LFTC Money Transfer, Mobile Money and Sub-Agency Banking to our credit union members.

William Thomas Bernard King, Manager

LFTC Credit Union

william.king@liberiafinanceandtrust.com

 Frequently Ask Questions

What is Liberia Finance & Trust Corporation Credit Union (LFTC-Credit Union)?

LFTC-Credit Union is a community and member-based saving & lending institution providing its members basic savings and lending services. Members' savings and equity are utilized for lending. We are licensed and regulated by the Cooperative Development Agency (CDA), the Central Bank of Liberia (CBL) and under the oversight of the Liberia Credit Union National Association (LCUNA).

How is LFTC Credit Union governed?

LFTC Credit Union is governed by its Bylaws.

Why is the LFTC Credit Union needed?

We fulfill a financial need for our members who will not normally have access to saving and lending from traditional banks.

Where are our savings and equity cash held?

Our LFTC Credit Union funds are presently with EcoBank Liberia Limited, with whom we have an established banking custodian relationship. LFTC Credit Union is a non-depository financial institution not licensed to conduct depository banking business. All savings and other cash received are deposited into our LFTC Credit Union EcoBank Liberia custodian account.

Who is EcoBank Liberia Limited?

EcoBank Liberia Limited is the leading licensed commercial bank in Liberia and has been operating in Liberia since 1999. This custodial relationship allows us to facilitate our financial transactions and reach members in broader areas. 

Is LFTC Credit Union’s deposits insured at EcoBank Liberia Limited?

Central Bank of Liberia requires banking institutions to have ten million dollars on reserve. EcoBank consistently has met customers' withdrawal requests  Ecobank Liberia is regulated by the Central Bank of Liberia (CBL) and has met all regulatory capital requirements and remains committed to operating in accordance with the prudential guidelines.

Can both Liberians and non-Liberians become members? Additionally, do you have to reside in Liberia to join the LFTC Credit Union?

     The LFTC Credit Union is a member-based community saving and lending institution and our bylaws permit us to accept members both locally and internationally, and member-based community saving and lending is not restricted to Liberians only.

Is this a credit union where we can have normal savings and checking accounts?

LFTC Credit Union is a not-for-profit micro-lending organization and is not equipped to operate customer depository banking activities.  All savings and other cash received are presently deposited into our LFTC Credit Union EcoBank Liberia custodian account.

How do I know my information is safe?

We have received the necessary training and the importance of maintaining members' confidentiality. Our system does not permit the sharing of member information to unauthorized personnel.

How will I be able to access my account information?

We maintain both hard and soft copies of customer accounts and balances, and can provide information within 24 hours during business hours. Currently, we do not offer an online system for customers to check their accounts individually.

How much Equity (Shares) can I buy?

You can buy 10 shares at $40.00 per share. Each shareholder is limited to one vote regardless of the amount of shares they purchase. At the end of the year, members receive a surplus in proportion to the amount of shares they own.

Why should I save as much as possible with LFTC Credit Union?

Savings helps you to prepare for tomorrow.

Do you allow a member to co-sign for another member?

As a member base lending organization we allow for members to put up their security for another member who wants to borrow above their required quota. 

Is transferring money secure?

LFTC Credit Union utilizes reputable money transfer and mobile payment services with a good reputation and tried and tested processes. 

Can I borrow while I am out of the country?

Yes, we are able to make loans available to you overseas. There may be a money transfer or mobile money fee depending on the money transfer or remittance service you request we send it through.

When can a member begin borrowing?

We encourage members to save for six months before borrowing depending on their circumstances.

What happens if a member can not repay their loans?

We are committed to working with our members to find a sustainable solution because repayment of debt is part of being financially responsible.

What's in it for me?

At the end of the year a surplus (profit) is distributed to our members. Members share in the surplus of the credit union at the annual disbursement, currently our distributions are: 65% to our members, 20% for operation expense, 10% growth opportunity, and 5% to board of directors. 

Why is the surplus distribution set up this way?

 To ensure the continued success and growth of our business, it is essential to allocate a portion of our profits to pay employees, maintain operations, and retain quality board members. Investing in our workforce and infrastructure allows us to deliver exceptional service and achieve our strategic goals. Additionally, compensating board members fairly ensures we attract and retain experienced professionals who provide valuable guidance and oversight. 

How will the loans be secure? 

We offer secure loans based on a percentage of members’ savings or equity in the Credit Union. Currently, we accept gold as collateral. Members may also co-sign for others, using their savings as security.

Can I send someone to pick up the money?

Yes, you can send someone to pick up the money as long as they are properly identified via a government-issued ID and our validation process. 

Why is there a charge of 2% to withdraw from my savings? 

LFTC Credit Union is a micro community lending organization and the savings and equity are what qualifies a member to take loan and partake in the surplus. This surplus can be used to increase your savings or to purchase more equity. Withdrawing your savings depletes the available capital that we lend. Members are not charged a 2% fee at the annual disbursement.

Will we lose our money due to civil and political unrest? 

Investing in Liberia does carry risks due to its current political and civil unrest. While there are opportunities for returns, the risk of instability can impact the safety and profitability of investments. It's crucial to thoroughly assess these risks and consider safeguards before proceeding.

Will you only do secure lending? 

Initially we will focus on secure lending to member. A member may borrow up to 70% of their deposits.  The loan is protected by the deposits of the member.

How much does it take to begin my membership?

 You are invited to become a member with an initial contribution of USD $55.00. This includes $10 for Membership Dues & Passbook, $5 for the LFTC Credit Union Administrative Fee, and $40 for Member Share. Additionally, we require a minimum monthly savings commitment of $5. 

How does the 20%  revenue share work?

 Liberia Finance & Trust Corporation (LFTC) facilitates money transfers, mobile money services, and sub-agency banking, providing accessible financial solutions to the community. Credit union members savings and equity are utilized to provide these financial solutions, with 20% of the revenue generated directly benefiting them. This model not only strengthens financial inclusion but also offers members a unique opportunity to earn interest on their savings, reinforcing LFTC’s commitment to sustainable economic empowerment. 

William Thomas Bernard King, Manager

LFTC Credit Union

william.king@liberiafinanceandtrust.com