Interest Free Loan Policy
Interest-Free Loans
The ISCV board may at its discretion offer interest-free loans up to an amount of $2,500 to Muslim members of the ISCV that are of good character and are in need of financial assistance. Such loans, which are to be offered from the ISCV operations account and not the Zakah Fund, are to be repaid by the applicant in a period of time that is agreed upon between the two parties.
In order to be considered by the ISCV board for an interest-free loan/financial assistance, potential recipients must successfully fill out and sign the Interest-Free Loan Application and provide the necessary documentation required for verification purposes; otherwise, the application will not be reviewed by the ISCV board. All applicants are also required to provide a post-dated check as a collateral either personally or through a guarantor. Post-dated checks will be filed by the treasurer in a secured filing cabinet or bank safe.
For approved requests, the treasurer will issue a check in the amount approved by the ISCV board in the name of the applicant. All checks are to be duly signed by authorized ISCV signatures.
In the event that the loan recipient does not abide by the loan repayment schedule agreed upon with the ISCV, then the ISCV will proceed with cashing the collateral. Should the outstanding loan amount be less than the amount obtained by cashing the collateral then the ISCV will issue a check to the recipient for the balance. In the event that the check bounces due to the unavailability of sufficient funds in the debtor’s account then the ISCV will pursue the collateral through a debt-collecting agency.
At any time, the ISCV board has the right to forgo any portion or all of the loan owing to the ISCV if the debtor is found to be eligible for Zakah.
The ISCV board may at its discretion offer interest-free loans up to an amount of $2,500 to Muslim members of the ISCV that are of good character and are in need of financial assistance. Such loans, which are to be offered from the ISCV operations account and not the Zakah Fund, are to be repaid by the applicant in a period of time that is agreed upon between the two parties.
In order to be considered by the ISCV board for an interest-free loan/financial assistance, potential recipients must successfully fill out and sign the Interest-Free Loan Application and provide the necessary documentation required for verification purposes; otherwise, the application will not be reviewed by the ISCV board. All applicants are also required to provide a post-dated check as a collateral either personally or through a guarantor. Post-dated checks will be filed by the treasurer in a secured filing cabinet or bank safe.
For approved requests, the treasurer will issue a check in the amount approved by the ISCV board in the name of the applicant. All checks are to be duly signed by authorized ISCV signatures.
In the event that the loan recipient does not abide by the loan repayment schedule agreed upon with the ISCV, then the ISCV will proceed with cashing the collateral. Should the outstanding loan amount be less than the amount obtained by cashing the collateral then the ISCV will issue a check to the recipient for the balance. In the event that the check bounces due to the unavailability of sufficient funds in the debtor’s account then the ISCV will pursue the collateral through a debt-collecting agency.
At any time, the ISCV board has the right to forgo any portion or all of the loan owing to the ISCV if the debtor is found to be eligible for Zakah.