The processing of the Samoa National Provident Fund short term loan (STL) resumed last Thursday 1 February after the usual cease during the interim payout however there is another uproar among its members as the body is now reinforcing the maximum amount a person can take.

SNPF allows its members to borrow from their contributions under its two small loan schemes which are known as Entitlement and STL. Entitlement allows the members to borrow 50 per cent of their contribution whereas STL permits 15 per cent thus bringing them to a 65 per cent loan maximum.

However, many members have received leniency over the years due to the significant urgency of their requests taking them above the usual 65 per cent limit.

A member who did not want to be named expressed his frustration after the fund denied him an additional short loan which he hoped would assist in paying his daughter's tuition at NUS.

"I am very disappointed because I came a long way from home only to find that I am not eligible for a loan," he told Samoa Observer.

He further stated that he found out that the education loan scheme is no longer offered and said that the SNPF board should reconsider restricting their funds because not all earn the same.

"This is the only hope left for me and since I was denied an additional STL, I then requested for education loan but I was told that they no longer offer it."

Therefore, upon returning to acquire additional funds under the same loan schemes they were told that they were not able to, due to the re-enforcement of the 65 per cent maximum loan policy.

Seemingly coming off as a newly actioned policy to its members Acting Chief Executive Officer, Faalogo Luana Esera, clarified that the board and management initiated the re-enforcement to ensure that the true intended purpose of the fund "a compulsory savings scheme for the purpose of retirement" is served. 

 "This can never be achieved if we allow members to 'over-loan' or borrow beyond their entitlement eligibility," Faalogo added.