Credit guideline Review highlights

Eligibility Requirements

• One should be a fully paid up member of the SACCO (member has 64 shares)
• One should have saved with the SACCO for at least 3 consecutive months and a minimum balance on general saver’s account of 1,000,000/= (one million shillings) before accessing the credit product.
• Interest rate is on reducing balance of 16% for all credit facility products except short term loans.
• Minimum loan amount is 100,000 and maximum loan amount is Shs. 200,000,000. Any loan above 200,000,000 a waiver shall be sought from EXCO and SUPCO; Must be secured with collateral with a forced sale value above the required loan.
• Repayment period is as stipulated per product.
• All loan processing fees are met by the member either by cash or authorization of withdraw from the savings.
• Loan Processing fee varies between 5,000/= and 60,000/=. Loan processing fee chargeable on all loans.
• Insurance fee 1% of principle (Insurance company 0.9% and SACCO reserve 0.1%)
• Guarantors (1 guarantor for 20Million and below, 2 guarantors for above 20 Million but below 50 Million, 3 guarantors above 50 Million). One of the guarantors should be a current workmate for those in formal employment or a family member and a member of the SACCO.
• No staff or member of the executive shall be a guarantor to any member.
• Search, valuation and boundary opening fees are to be paid by the client.
• Securities-Letter of undertaking from employer, registered land titles for land, and Log books are to be paid by the client.
• Loans shall only be issued after the land titles have been verified by the SACCO lawyer.
• One can only access a top up loan after repaying the current loan up to 60% of the loan amount.
• Turnaround time is 5 working days after receipt of all necessary documents.
• Maximum repayment period is 60 months.