Samoa National Provident Fund has brought in changes to their vehicle loan policy to ensure that contributors can repay the loan. The changes include a guarantee of freehold land.

SNPF chief executive officer Lemalu Selesitina Reti said up to 75 per cent of a contributor's total contribution will go towards the loan, and only 25 per cent is left for payments.

Lemalu said the changes made for an applicant to have at least a recent valuation of a freehold property are not only to secure their contributions, but to make sure these people are getting good quality cars for use.

"There are other people who have loaned from this scheme and are struggling to pay. This is one reason for the Board and the management to have changes to the vehicle loan scheme," Lemalu said.

She was responding to questions from the media on the day of the announcement of the four per cent dividend payout to all SNPF members.

SNPF contributors claim the new requirements are a hassle. Contributors have to provide a guarantee that includes freehold land.

One teacher said this is quite a burden to the contributors, even if the SNPF management has their reasons.

She said the Board and management should reconsider it because this was another loan scheme at SNPF that helped families to afford cars.

A man who is the only breadwinner for his family also echoed the same sentiments. He said the new criteria for a freehold property to be provided as a guarantee were absurd.

"This is just not right, and the loan must go back to the old criteria so that families with low income can afford a car," he said.

The following is a checklist for a member of SNPF who wants to apply for a vehicle loan:

Checklist Vehicle Loan Request

1. Confirmation of employment

2. Recent payslip

3. Six months' bank statement of the applicant's account in which her/his pay is credited to

4. Quotation-vehicle year 2018 and above

5. Recent valuation of a freehold property (less than five years)

6. Consent from the owner (not the applicant's land)

7. Updated computer folio (CFC)

8. Pay the Application fee of $100 or $200 based on the loan request

Notes:

1. The freehold property should not contain any graves on it

2. No refinancing is allowed under the vehicle scheme

3. Applicant NPF member loan should be free from arrears

4. Applicant(s) must not be a guarantor to any investment loan account(s) with the Fund

5. Vehicles to be purchased from overseas are not allowed