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Loan Policy

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LOAN POLICY

To Qualify For A Loan

  • One must register as a member by paying membership fees of Kshs 1,500
  • Minimum monthly share contributions shall be Kshs 1,000 payable by 15th of every month.
  • A member must have completed at least 6 months and contributed not less than Kshs. 10,000.
  • A member who withdraws from the society and rejoins later will be treated as a new member for the purpose of the loan policy and shall pay a rejoining fees of Kshs 5,000
  • Savings contributions paid in lump sum for the purpose of securing a loan must remain in the Sacco for at least 3 months.
  • A member must undertake to pledge salary from future employer(s) toward loan repayment.
  1. Interest on the first loan shall be 1.5% per month on a reducing balance basis and thereafter subsequent loans shall attract interest of 1% per month on reducing balance
  2. The maximum amount of total loans shall not exceed Ksh…………………….
  3. Emergency loans include sudden hospitalization, funeral expenses, court fines, etc.
  4. Repayment period is determined by Management Committee, but in all cases shall not exceed 36 months.
  5. Emergency and School fees loans shall be repaid within 12 months.
  6. Unless the loan applied for is equal to or less than a member’s shares, it must be secured by guarantors, log books or any other financial instrument that may be approved by the management committee.
  7. To withdraw membership, a member will be required to give a written notice of up to 60 days.
  8. Lump sum loan repayments for the purpose of borrowing a new loan must be retained in the Sacco for at least 3 months prior to borrowing again.
  9. All loan applications must be registered in the Sacco’s office.
  10. Normal loan applications shall be processed within 15 days provided that the applicant shall have complied with all requirements.
  11. Emergency loans shall be processed within 3 days provided that all paper work is complete
  12. School fees loans shall be processed within 7 days provided that all paper work is complete.
  13. Asset financing loans shall be processed with 30 days provided that all paper work is complete.
  14. In case a member passes on, all his/her shares residue shall be transferred to the next of kin indicated in the application / Bio data form.