Members of Premium Finance PLC have applauded the management of the financial institution for its positive balance sheet for 2024, recording enormous growth and impact.
The institution was able to increase its balance sheet to 306 million Francs, up from 254 million in just three years of existence. Premium Finance has a loan portfolio of 50 million and has done tremendously well in the loan recovery section that stands at over 98%.
The members were impressed that Premium Finance was able to pay 4.5% interest rate on shares/savings.
Neba Asongwe Gervase, Manager of Premium Finance
Neba Asongwe Gervase, Manager of Premium Finance credited this level of success to the quality of its staff whose politeness, and assiduity has created a lasting impression in the minds of members. "We are currently at 600 members and operating more than 1200 accounts." Asongwe said.
The major difference between Premium Finance and other financial houses in the Republic, has got to do with principles that respect the Islamic religion.
Ousamane Moh, Premium Committee Member
In a presentation, Ousamane Moh, member of the Premium Committee expanded on what the Islamic section of Premium Finance is, and the benefit to members who subscribe to the option.
"In Islam, we don't accept interest,and we don't give interest. However, there are services and options in the Islamic program that brings income and we can pay our workers. What we do is that we pull our resources together and instead of giving loans with fixed interest rates, we can choose to invest in a business. The proceeds of that business is shared based on the percentages that we have agreed. Alternatively, if a member sees a business and decides to invest in it, we provide the funds. The member tells us how much he will repay us after concluding the business. This amount is not fixed since the outcome of business is always unforeseen." Ousamane said.
He further explained that there is a close follow-up of the business to ensure that there is no cheating of any party involved. These loans are backed by a collateral or a surety who must be a member of the Islamic scheme.
Ousamane Moh went forward to say that the scheme is not limited only to Muslims but it is backed by the fundamental principles of truth, honesty and loyalty.
"For example, the person may want to buy maybe oil and sell. Let me take our local reality. Now the person comes to the bank and says, please, I have a vision that I want to buy, I want to go to Widikum for example, get oil to come and sell, but I don't have the money. I have only 50% of the money, I need one million and I am going to make a profit of about 300,000 but I don't have a million francs. I have 400,000. Please give me 600,000. Then the bank will say, now when you make that profit of 300,000 Frs, how much will you give to the bank? So with that negotiation, the person may say, I will give 100,000 to the bank. The bank says no. Please, just add something. Then they will agree on, say, 120,000. So when he makes 300,000frs profit, then he gives 120,000 to the bank. He takes about 180,000 for himself. That is profit sharing. So at the end of the day, he pays back the loan, and then he gives 120,000 to the bank."
Other members of Premium Finance especially from the Nigerian community asked the union to facilitate transactions between the union and Nigeria. A request which the management says will be considered.
Douala branch office to be inaugurated, May 31
Premium Finance will extend its services to Douala with the opening of a new branch on the 31st May. Members were told that this will ease their transactions and the two branches will be linked.
The union expects to grow by 25% in 2025 and to run a balance sheet of 500 million Francs by the close of 2025.
Premium Finance PLC is also working hard to transform its status from the Category 1 to a category II Microfinance.
By
Ndi Tsembom Elvis
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