LOAN POLICY

To Qualify For A Loan

  • A member must have completed at least 6 months
  • A member who withdraws from the society and rejoins later will be treated as a new member for the purpose of the loan policy.
  • Savings contributions paid in lump sum for the purpose of securing a loan must remain in the Sacco for at least 6 months.
  • Interest on Normal loans shall be 1% per month on a reducing balance basis.
  • The maximum amount of total loans shall not exceed Ksh. 20 million.
  • Emergency loans include sudden hospitalization, funeral expenses, court fines, etc.
  • Loans exceeding 1 Million must be approved by credit Committee and the Management committee.
  • Emergency and School fees loans shall be repaid within 12 months.
  • Unless the loan applied for is equal to or less than a member’s shares, it must be secured by guarantor’s, log books, share certificates of quoted companies, insurance policies or any other financial instrument that may be approved by the board.
  • To withdraw membership, a member will be required to give a written notice of up to 2 months
  • Normal loan applications must be registered in the Society’s offices by the 5th of every month.