National Credit Act 34 of 2005

VBS MUTUAL BANK LANGUAGE POLICY


1. BACKGROUND

VBS Mutual Bank was founded in 1982 as a Building Society to serve the Savings and Advance needs of the then Venda Homeland.

During the nineties the Bank was converted to a Mutual Bank, after which Banking License No 1051 was issued to the Bank.

We currently operate through 3 branches - Thohoyandou, Sibasa and Louis Trichardt, where the Bank’s Head Office is also situated.

All branches are situated in the Vhembe Municipal district within the Limpopo Province.

The Bank had to submit a Language Policy proposal to the National Credit Regulator, in which English and Tshivhenda were proposed as the Bank’s Credit languages.

This was accepted by the Regulator.


2. STATISTICAL BREAKDOWN IN SUPPORT OF THE BANK'S LANGUAGE PROPOSAL

Source : Statistics South Africa - Population Census 2001

Limpopo Province

Total Population                                           5,273,642
Home Language : Tshivhenda                       839,704                          15.92%
Population Vhembe District                        1,199,883                          22.75%

Vhembe District

Total Population                                           1,199,883
Home Language : Tshivhenda                       818,902                           68.25%



3. VBS MUTUAL BANK - STAFF LANGUAGE PROFILE AS AT 01 APRIL 2010

Business Unit                  Location                       Total             Tshivenda          Other
Head Office                        Louis Trichardt                  8                        2                        6
Credit Department            Thohoyandou                    13                     12                        1
Branch : Thohoyandou      Thohoyandou                    30                     29                        1
Branch : Sibasa                 Thohoyandou Sibasa      17                     17                        0
Branch : Louis Trichardt    Louis Trichardt                 13                     10                        3
                                                                                        81                     70                      11
                                                                                      100%                 86%                  14%


4. ADDITIONAL LANGUAGE : CREDIT PRODUCTS

4.1 The above breakdowns supported the Bank's proposal to introduce     TSHIVENDA as the additional CREDIT client language with English.

4.2 As noted above, this will serve 68.25% of our client market, while the bulk of our staff is proficient in this language.


5. INTRODUCTION OF TSHIVENDA AS ADDITIONAL CLIENT LANGUAGE

5.1 Credit documentation has been designed, drafted and will be updated from time to time in line with the Credit Act requirements. These will include, but is not limited to:

    Credit Bureau consent
    Pre - transaction disclosure and quotation form
    Application form, main agreement and supporting documents
    Statements and standard correspondence re collection and debt counseling
    Selected marketing content


5.2 Selected key documentation will be translated into Tshivenda as well, printed and should the client select Tshivenda as his/her preferred language, be used by operational business units.

5.3 A clients who select Tshivenda should be referred to a Staff member that can speak this language.

5.4 In certain instances Banking hall posters, signage and media advertising will also include Tshivenda language.