REPAYMENT ARREARS

Greymouth Evening Star, 21 March 1946, Page 10

REPAYMENT ARREARS

MINOR REHABILITATION LOANS ■ BOARD EXPRESSES CONCERN Concern at the apparently increasing trend among numbers of exservicemen to fall into arrears with repayments of certain types of rehabilitation loans, was expressed at the last meeting of the Rehabilitation Board. Free-of-interest loans to purchase tools of trade and furniture and low-interest rate loans to establish business were the types quoted as being more generally in arrears. The averages for New Zealand of arrears in repayment of these kinds of advances were stated to be: Tools of trade 18.8 per centum of borrowers, furniture 8.2 per centum, and business loans 8.6 per centum. In one large rehabilitation centre the arrears of repayment of tools of trade loans was as high as 42 per cent, of borrowers. Loans for tools of trade are advanced up to £5O, for furniture up to £lOO, both free-of-interest, and for the establishment of businesses up to £5OO at 4 per centum, with a special reduction of 2 per centum in the first repayment year. It was stated that a borrower was regarded as in arrears when he had missed more than four weeks’ payments. Board members commented that the worst feature was that the arrears were on tools-of-trade loans, repayments on which were well within the scope of tradesmen’s wages. It was considered. that the only reason for getting in arrears with repayments of such loans should be sickness. . It was decided to emphasise that the acceptance of their legitimate responsibilities must be recognised by ex-servicemen if rehabilitation was to be carried to a successful conclusion. .