When do I qualify for a loan and how much do I qualify for?
A member qualifies for a loan after six months of active membership, having attained minimum savings of Kshs. 100,000 and having accumulated the minimum share capital of Kes. 20,000. Your qualification can be based on your deposits (as a multiplier of 3,4,5 or 8) or not depending on the loan product one is interested in. Depending on your need, our credit officers will advise on which product would most suit you.
What do I need to do to apply?
Once you decide on the loan type, you are required to fill out a loan application form and attach the documents as advised by the credit officer and forward the same to our offices for appraisal. All loan applications should be received in our offices by COB every Monday for consideration that week.
What forms of security does the Sacco take to secure loans?
Guarantors, Motor Vehicles, Title deeds/Leases, NSE Shares, Money Market Fund Accounts & Insurance Policies
What is the loan processing period?
The loan turnaround time is 3-5 working days subject to meeting all requirements of that loan. Special loans may take longer due to security perfection.
What is the interest charged on loans?
All loans except Immovable Asset Finance Loan, Personal vehicle loan and the Express Loan, attract an interest of 1% on reducing balance.
Can I take a loan against my deposits?
Yes, you can. The loan attracts interest at 1% per month.
Why pay interest on a loan that is against your savings?
The interest payable on this loan and other loans is what ensures we pay annual interest on deposits and dividends every year and pay for office running expenses. Your share deposit account also keeps growing monthly as you service this loan as a portion of the installment goes towards growing your deposits.
Can I have more than one loan at any given time?
Yes. As long as you are within your loan eligibility, and you have provided proof that you can service two or more loans concurrently.
Can I top up a loan I am currently servicing?
Yes. The Sacco allows a member to top up their Normal, Business Development and Asset Finance loans provided the current one has been serviced for six months and is up to date.
Can I offset my deposits against my loan?
It is against credit policy to use member deposits for purposes of loan repayment. A member is only allowed to offset their deposits against his loans if he/she is ceasing to be a member. However, special consideration may allow use of member deposits for loan clearance under unique circumstances if it has been determined that the loan borrower has no capacity to pay up his/her loan(s). One must pay off the difference immediately (between the loan and savings) if any before submitting the offset request. In addition, any prior guarantees to other members must be replaced first.