The name “Esusu” or “Ajo” or “Thrift “or Mutual” Financing” are not new to us. Within the market places, churches or at home, people of different classes and ages do one form of contribution or the other, with the purpose of saving money to buy assets, support business, start a new oneor for other personal reasons.
The danger in this informal arrangement which many contributors have faced in the past is that of losing their money, either because one or more of the contributors butted half way or the person that keeps the money disappears with the contributions. This experience has not only discouraged many from saving, but questions credibility of who should provide this service. Here, Insurance experts in financial management says, be rest assured that your contributions in whatever name is safe and productive.
In the offering of Custodian and Allied Life company, has come “Esusu Shield” which uniquely combines features of Ajo, Esusu, thrift and mutual financing to meet the savings, financing, life assurance and personal accident benefits of policyholders.
The features of the policy, the Company noted includes life assurance and personal accident benefit, meaning that, for being part of the contribution you are entitled to financial benefits in the event of accident and life cover should the unexpected happen. It takes a minimum N2000 to be part of it.
The policy pays on the contribution interest rate equivalent to the Central Bank of Nigeria’s (CBN’s) average savings rate of deposit money banks.
A contributor in the Esusu Shield can take part or full of what he or she has contributed after 2 years without penalty, and this will equal total contributions plus interest.
Besides that, the person can collect loan up to 75 percent of total contribution or up 75 percent of other members’ contributions if the members are willing to guarantee the loan.
Author: Modestus Anaesoronye