1. Eligible recipients of Consumer Loans from the Bank:

a. Shall be resident or citizens of the Republic of the Marshall Islands.

b. Has been employed for minimum six months in current workplace

c. Have good credit history with other lending institutions. For notes that exceed borrower’s annual salary, at least 50% have been paid.

d. Meet minimum requirement for Net Pay if repayment is thru salary

e. $50.00 for Majuro & Ebeye residents

f. $25.00 for Outer Islands residents

2. For other lending programs, such as the Housing Preservation Grants, etc., the bank will follow eligibility requirements specific to those programs and their objectives.

3. In approving any Consumer Loans, the Bank shall consider and follow the following criteria and guidelines;

Repayment Term: Repayment term is set at 3 – 5 years based on the applicant’s repayment capability and the condition and status of the vehicle.

a. Used vehicle – maximum 3 year term

b. New Vehicle – maximum 5 year term

Interest rate for auto-loan is set at 12%; however, if the borrower has a D/I ratio of 50% or less, he/she may be qualified for 9% interest rate.

Maximum amount of loan for auto-loan is set at $40,000.00. However, the Bank has discretion to increase the amount based on borrower’s ability to repay loan.

No disbursement shall be made until and unless all the required documents have been provided and executed by the borrower

a. Loan Application

b. Credit Checks (must be no more than 15 days)

c. Applicant Check stub

d. Personal guarantor form

e. Verification of employment

f. Loan drawdown

g. Loan agreement

h. Promissory note

i. Chattel mortgage

j. Photo of vehicle

k. Price quotation (including shipping & handling for off-island purchases) 

Subject to the discretion of the Bank, a loan may be disbursed in form of purchase order in which payment will be forwarded straight to the vendor if the vehicle is to be purchase on-island. For off-island purchases, a loan may be disbursed to either vendor borrower.