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Loans

The following table shows the number of loans approved during the last three years:

2018-2019

2017-2018

2016-2017

Number of Loans Approved

3182

3,306

3,201

Total Value of Loans Approved

$14,792,100

$14,588,500

$13,455,811

The following table shows the analysis of loan funds for the year ended 30 June 2019:

LOAN TYPE

AMOUNT $

% OF TOTAL LOANS

Home Improvement

552,700

3.74

General (Emergency)

22,000

0.15

Professional Development

26,500

0.18

Long Service General

463,800

3.13

Group Life Insurance

13,727,100

92.80

TOTAL

$14,792,100

100.00

The following types of loans are available to eligible members:

Home Improvement Loan. Home Improvement Loans are available to help a member build or buy a home or to furnish a home with new or second hand furniture. The maximum value of this loan is currently $4,000.

General Loan. General Loans are normally available to meet temporary circumstances such as emergency housekeeping expenses, family medical or dental expenses, pressing household bills or fares for travel or compassionate leave. There is no arbitrary limit on the amount of a General Loan.

Professional Development Loan. Professional Development Loans are available to assist members with education and study expenses. The maximum value of this loan is currently $4,000.

Long Service General Loan. Long Service General Loans are available to members who have completed 10 years of service in the RAAF and may be used for any worthwhile purpose. The maximum value of this loan is currently $4,000.

Group Life Insurance Scheme Loan. Group Life Insurance Scheme Loans are available to financial members of the Group Life Insurance Scheme and may be used for any worthwhile purpose. The maximum value of this loan was increased in January 2018 from $4,500 to $5,000.

The following table shows the breakdown of loans approved by rank. The Trustees were pleased to note that 63.0% of loans approved were directed to the lower paid members of the RAAF (junior ranks up to Corporal).

RANK

NUMBER OF LOANS APPROVED

% OF TOTAL LOANS APPROVED

Aircraftsman(w) / Leading Aircraftsman(w)

1,382

43.40

Corporal

625

19.60

Sergeant

349

11.00

Flight Sergeant

113

3.60

Warrant Officer

64

2.00

Officer Cadet

4

0.10

Pilot / Flying Officer

238

7.50

Flight Lieutenant

274

8.60

Squadron Leader and above

133

4.20

TOTAL

3,182

100.00

Bad and Doubtful Debts

The amount written off for the year was $13,301. The figure includes $6,461 in loans written off when members died in Service. On a turnover of loans of $14,792,100 accounts written-off represented 0.09%.