The Dominica Agricultural Industrial and Development Bank (AID Bank) is aggressively pursuing efforts to address the level of delinquency within its Education Loan Portfolio.
Essentially, the AID Bank’s mandate as a catalyst and leader in financing investments that promote development in the economic and social sectors of the Commonwealth of Dominica will be compromised if the funds that are owed to the Bank are not repaid.
At the end of the last financial year 2008 / 2009, student loans in the non-performing category totaled approximately EC$4.7 million. Defaulting on students’ loans is a very serious matter with far-reaching implications for the Bank in making new loans available to students wishing to pursue tertiary courses. Prospective applicants may not have the opportunity to pursue their educational goals or will face stringent measures when applying for student loans in the future.
It is important to note also that the non-payment of monies will affect the Bank’s ability to finance projects in the productive sector, which is instrumental in sustaining investment, creating jobs, and increasing foreign exchange earnings.
At the Bank’s Annual General Meeting, which was held earlier this year, the Bank’s General Manager / Consultant, Mr. Kingsley Charles Thomas, indicated that the Bank would take a tough stance on delinquent borrowers and would publish their names and photographs in selected media. According to Mr. Thomas, if people borrow for educational purposes and are in good paying jobs, then they should repay their loans.
An open letter has recently been published urging delinquent borrowers of student loans to contact the Bank to make suitable arrangements to honour their loan obligations.
The AID Bank has always embraced the opportunity to work with its clients. This initiative by the Bank is another attempt to reach persons whom it has been unable to contact by telephone, letter or e-mail, through guarantors and relatives or whom have simply ignored previous efforts by the Bank to seek a genuine resolution to their loan obligation.
The Bank has been challenged to meet a number of key goals and specific targets over the next five years, among which is the “unwavering focus” to reduce its overall non-performing loan portfolio.
– AID Bank
This is so sad :s
I’m pretty much satisfied with the procedures the AID bank is willing to take to recover the Loan funds they credited to these students. yall shoulda thought about how to pay back those loans before yall ran off and took those loans. Now I will be watching out to see who are these people and if I recognize anyone of them I will give up the info because all BS aside, the genuine students who plan on paying back those loans will loose their chance to secure a student loan when they finish high school.
I believe that the interest rate is too high. The bank has to make a profit but I am paying 10%. While I was studying I pay in excess of $8000.00 on a $24,000 loan and right now I have paid almost $8000 more since I graduated, AID bank need to lower those rates too. The people owing who are workign needs to get in contact with the bank and come to some agreement to show how much they can afford to pay if they installment is too high.
The bank knows that a lot of the delinquent people are employed. These people are very inconsiderate and they have to realize that is other people’s money they used. Some of us need to realize that in life we should not go and live above our means. I studied in Cuba because I know that I would not need so much of a big loan to go there but in those times a lot of the people who took big loans and did otherwise were like not me with Cuba. It is selfishness on a lot of them part too because they are depriving others of getting loans in the future and before they took the loan they had an idea of about how much they would be paying.
THE STUDENTS HAVE THE OPTION OF CONTACTING THE BANK IF THEY ARE NOT ABLE TO MEET THE REPAYMENTS. PLEASE STUDENTS HAVE A CONSCIENCE AND BE TRUE TO YOUR OBLIGATIONS. STOP GOING OUT THERE IN THE NAME OF “STUDYING” AND ALLOW EXTRACURRICULAR ACTIVITIES TO TAKE OVER. FACEBOOK SAYS IT ALL.
GIVE ANOTHER PERSON AN OPPORTUNITY TO FULFILL THEIR DREAMS BY KEEPING TO YOUR SIGNED AGREEMENT.
The banks always want there money back plus profit. Fiat currency that has been obtained for free by the banks and then put out at an interest rate to students and the public for a charge.
The cost of getting in debt for educational purposes these days is not worth it.
The jobs aren’t there like they used to be. The banks can keep you in bonage forever.
The first thing a student has to learn is that the pursuance of Education or knowledge always comes with a price, and I do not think most students give that first thought, all they are thinking of is wanting to have a higher Education and not thinking of the cost (money) responsibility , sacrifice, that comes with it. We are taught that by obtaining a higher Education it is the key to making large amounts of money, so if money is borrowed from the Bank or from Family it will be paid back after graduation . Well, it does not necessarily work like this all the time. After graduation that is where it all starts, welcome to the real world of “knocks and grinds” which most students are not prepared for.
Banks do have a right to be compensated for their money loaned to students, and the students are obligated to pay back the Banks. Banks should have some recourse as to the recovery of monies loaned, so that the cycle can go on helping other students who are in need. We all know the nature of Banks and what their business entailed when going to borrow money. I do understand in life sometimes we face crises and problems and cannot meet obligations, but that does not mean we are to be dishonest about it and neglect what obligations we have, it all comes down to how we deal with the situation we are faced with, and where we place our priorities as to what is important.
The problem the Bank is facing is not something new, since the inception of Banking there has always been the problem of bad debts for banks. it is something they have to work out, that is the nature of their business, not everybody is going to pay back the monies loaned, and some people are going to have problems meeting their obligations to them, let us not forget debt is profit for Banks. The cost of Education is constantly raising, Students graduate and are left with large loans to pay back and have not even started their families. These are some of the problems that students are faced with.There is also the problem of Jobs, employment, students should not believe that it is someone responsibility to create a job for them after graduation, and sit back and say “well there are no jobs, so I’m not going to pay back my student loan” It all boils down to what the student priorities and obligations are, and the Bank willingness to negotiate and find a meaningful way in recovering their monies loaned.
Not everyone is the same u know…what about those who took the loans to study and can’t get a job to pay it back…..now that’s messed up, u hv to consider everyone….anyways I think those who ARE able to pay it back to do so cuz it’s not fair.
In this day and age of distance/online learning programs as well as UWI open campus, people have no reason to take loans as large as mortgages to go abroad and study. You can stay home, work, whilst obtaining your degree. That way, your mortgage loan will really be to build your home. These students loan cripple people….they have to spend their whole life paying these loans back and cannot accumulate any wealth/property for themselves…good thing I am one of the smart ones who took the more cost effective route.
Just to tell someone you live in america for 3 or 4 years you tieing a noose around your neck, as well as that of your unfortunate parents who stupidly put up their home and property as collateral for you???!!!! PLEEEEEEEEEEZ. Think Smart people….
Stupes, I so agree wit yah!
all of allu ignorant….allu dam well know coming back to dominica don’t make no dam sense cus there aint no frigging jobs for university graduates….and when they do get a job it goes straight to the loan payment…therefore they cannot spend any money and pu tback into the country…all the money they earn goes back to AID Bank……..you think it easy to go and study and come back and can’t find a job for 6 months going on a year for some? some are lucky and find jobs within 3 months…and if u study a profession like law then it is inevitable that you find work when u get back home….but people studying other fields usually find trouble getting jobs as dominica is a place that dont give yyoung people a chance to grow in their field and practice their knowledge and actually give back…….what needs to happen is job creation and placing young graduates in positions when they return home so that they can pay back their loans and this problem won’t be so big after all….allu should not point fingers and bask in other people’s problems…….when you in the kitchen you feeling the heat…….its not easy at all for students and much less when they finish school and come back home…indeed those that stay in america and elsewhere and working and living life and not paying their loans ya you can say that….but the case is not for everyone….some people genuinely cannot afford the payments that AID bank require……….don’t be quick to judge!
I believe that the students should pay back their loans. Also AID Bank needs to be fair as well with reference to these high interest loans. A students pays 10% interest while they are studying. When that students starts to pay back the loan they still pay another 10% interest… Just imagine if you have a low paying job after you complete your studies how do you expect that person to survive.
make the surety pay, publish names,some spoil things for every one
as soon as they get their final disbursement that is it the Bank no longer hear from them all addresss and phone # change. The Bank has all it legal rights to publish their names none of them can sue the Bank if they do not want that all they have to do is pay their loan so that others can get to go study like them. The depriving me in getting a loan to go study.
Aid Bank should publish their names because the are the ones who go out there to study and never come back instead of coming back they criticize DA saying how backward and undeveloped it is. Publish all of the bastards name
I think people need to be responsible and held accountable for their actions. In addition, the bank should also make it more difficult in obtaining loans. There are too many students(I personally know quite a few) out there in good jobs who are not repaying their loans. This is unfair to future loan applicants and the ability of the bank to make more resources available.
Make it mandatory to have a collateral such as a house, and if they don’t repay the loans seize the house regardless of who it belongs to. They will think twice before having someone put up their house to further their studies. Only in Dominica this none sense can happen. Dominicans know all too well that if they pull that crap in the US or any other developed country they will be taken to court and be forced to make payments and if payments are not made their credits get ruined and with a ruined credit one cannot do ANYTHING be it apartment, getting future loans, buying a house and even getting a job. Yes lots of companies are doing background checks including credit checks.
DOMINICA PLEASE IMPLEMENT STRICT PROCEDURES TO ENSURE REPAYMENT SO THE COUNTRY AND CAN MOVE FORWARD.
It is not fair to single out one set of borrowers and blame them. Are all farming loans being serviced? Are all commercial loans being serviced? The only reason we want to go after student loans is to embarass people by publishing their names on the papers. AID Bank makes a mint on student loans. Students pay interest while they are studying, after the loan is converted and if they want to close the loan a triple punishment. AID Bank needs to grow a conscience.
I don’t know if you are aware of these facts. 1. If these people had borrowed monies from u.s. banks and had defaulted on their loans their names and social security numbers would have been sent to the credit bureau {s} and they would be unable to get any more loans, rent an apartment etc. 2. the banks would make arrangements to take the money from their accounts. 3. Their co- signer would have to face the burden and also face the same fate as listed in number 1 above. Trust me i’m speaking from experience.
Wage garnishment is court ordered banks cannot do it automatically. nope.
Publish their names…….throw it in their face
WHEN GIVEN LOANS TO GO OVERSEAS TO STUDY STUDENTS SHOULD BE OBLIGIED TO RETURN TO WORK AND REPAY THESE LOANS AS A FACT IT SHOULD BE THAT EVERY STUDENT THAT GETS LOANS FROM THE AID BANK AND FINANCIAL INSTITUTIONS IN DA RETURN TO SERVE TIME IN DA. WE USE OUR PEOPLES MONIES TO HELP THEM AND THEN THEY DONT SERVE DA AT ALL BUT GIVE THEIR SERVICES TOO ALL OTHER COUNTRYS BUT THEN WE WANT DEVELOPMENT IN DA. HAVENT WE REALISE THAT EVERY COUNTRY THAT WE GO TO AND SERVE THEM ARE MORE ADVANCE THAN DA? REMEMBER THAT POPULATIN IS WHAT BUILS A COUNTRY. LETS DO A TEST BRING IN AT LEAST 15-20THOUSAND PERSONS TO DOMINICA FOR A PERIOD OF 5 YRS AND SEE WHAT HAPPENS. THERES GOING TO BE MORE BUSINESS /MORE JOBS/ AN INCREASE IN THE ECONOMY. I SAY ALL THIS TO SAY MAKE GOOD USE OF THE LOANS WE GIVE PAY BACK SO OTHERS CAN ALSO BENIFIT AND SERVE DA IN RETURN FOR HER HELP TO U
Comunist,
Your name is appropriate.. You are a very stupid person. First of all it is not yoru money! Dominica is not liquid enough have thatkind of money. It is a loan from CDB, European Investment Bank and the like. So youa re telling me ! I take loan that I have to repay and I have to be obligated to come and serve Dominica. Man stop talking a***ness.. If all you paying all of it yes but If I have to take a loan then crap smoke your pipe.
man you is a big Boom Boom! Where de jobs for them ?
Comunist,
i dont accept your take on this. The fact is our beloved country is unable to employ those of us who return hungrily to work and pay our loans. am lucky, after about 7 months back and teaching adult education for free, i found a job, but i have friends who returned, with me in 2005 who had no choice but to leave state in 2008, when they were still unemployed. They were bonded by the state. some were told by this lady at ministry,” yes you are bonded but we dont owe you a job”, however, i will admit, just as i pay the AID bank monthly before even seeing my pay slip, others who are employed should also, whether local or foreign.
we giving them loans to go and study in the u.s …what we expect
Why do people want the board fired? It look like is the board that take those loans? I think the board should take a harder line and one way is to publish the names of thise at fault, in the newspaper and DNO.
Dominican, y ou obviously know nothing about banking and AID Bank so you really need to shut yoru trap. AID bank cannot legally publish peoples names, it will be a violation of tha banking act and they can be sued and even closed…
uhh yes they can, Its in fact LEGAL. You sound like you have a loan to pay back lol, I will see your name and picture soon.
And who’s gonna sue IF it wasn’t legal? yall can’t even pay back the damn loans muchless to sue the bank lol.
Even thou you publish the names? When they overseas you think they care. Is to hell with all you … That loan is a ticket to another country fro a better life..
Zebe la pas toujour verte l’autre cote la. La vie l’amerique c’est pas sa nous vlez kweh.
@ Dominican it really came out like you want to see the names and faces. lol
Publising names and faces is not going to anything – please someone is in Canada, US or England working who cares what is published in the papers or on DNO.
Not that I care about names being published.
Why do people always point fingers? The article is not about the hoteliers it is about delinquent student loans. Although I do agree that all delinquent loans should be payed back We are not here to say that because you owe more money we should attack you. So hoteliers as well as students as well as home owners and automobile owners, who are delinquent should repay their debt. As a student soon to be going to med school the student delinquent loans affect me, because I need money for my education and I would not like my future to be jeopardized because certain ppl decided to turn their backs on their responsibilities. Life is a circle, everything rotates A dollar in the farmers hand and a dollar in a lawyers hands is what helps build the country, it doesnt matter who’s hand. So all “Dem dat doe want to pay back wat is not derz better do wah dem hafu do quick” because it helps them and their children as well. Oh and I dont think that the people should be publicized, putting their faces in the media? really? the burden of choosing a suitable candidate to lend ur money to is on the shoulders of the bank, if they had done their research they would know who to and not to, have borrowed money from them.
i think they definitely should publish the names because there has been a breach of contract… shame and embarrassment works wonders just ask FAST CASH
lol
get tought on them, it time we become responsible in Dominica.
“Instigator” the last auditor’s report showed E.C.$8.95.8 million in loans repayable in respect of tourism
(four projects) so how come you make it “over $50 million”?. Nonetheless, these loans need to be repaid, just like the students’ own, who got a and advance to invest in their future, and just like I have to pay my Domlec- & LIme bills unless I want to get cut off! The lender could always seize assets in settlement of these outstanding debts.
Editor, correction E.C.$8.95 million (instead od E.C.$.8.95.8 million).
i agree… AID Bank needs a recoveries dept.. start selling the land they use as collateral so that they can get back their money
Casanadra, Get the financials again and read it property…. 90% of the hotels in Dominica are financed by the AID Bank …
I feel you Hmm…. I mean if they really wanted the money back then why not allow clients to pay back more than their monthly amount?
Also what about a loan’s book so the we the clients can keep track of our principle?
I speak for the faithful few who pay back their bills.
true dat. that … slip of paper they giving you when you pay your loan; i mean what the blazes is that about? if you lost that paper, it’s their word against yours that you didn’t pay. Come on Aid Bank, give people loans book so they can track that down. All you making RCCU come better than all you? Shame.
Haha ! What about the hoteliers, the tourism portfolio is over EC$50 million in bad loans.. Seriously they need to stop making these stupid empty senseless threats… To fix their problem then need to fire the Board, and replace them …
Then they need to do a shake up…They need to begin to view their staff as the greatest asset of the institution and treat them accordingly. They then need to aggressively go at the seriously delinquency like the hoteliers… Follow in this they begin to make sense. I am eternally disappointed in the new manager consultant …
That good, is time the commercial banks offer study loans to students…
Anonymous, careful what you ask for
What about those of us who are paying diligently? Do we get a little incentive; like lower interest rate? Praise the Lord, slowly but surely my balance is reducing.
I agree!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I so agree….I always pay my interest a whole year in advance so my parents don’t have to worry about that whilst I’m gone…how about lower interest rates.
Say that again. Some of us diligently repay our loans no matter how hard it is. That monthly installment is the equivalent of a decent rent and almost a mortgage payment, but it gets paid like clockwork. The bank came through for me, now as a good paymaster, I have to own up. Having said all that, it is very discouraging to see how little the principle is decreasing. Imagine almost 6000 US a year and literally half of that is just interest!!! The least that the bank can do is gradually reduce the interest rate. Even major credit card companies have lowered interest rates for customers who have proven to be faithful and consistent with their payments. That would really help a bit if a little more went to the principle than so much on interest, especially after you have paid interest all while you were studying. It’s not right.
The same way you want to reprimand the delinquent, then you should reward the diligent!!!!!