Loan Features

This type of loan facility is divided into two segments that is; when one uses the land title to secure a loan facility and when a member wants to acquire land and the land to be acquired act as security for the loan applied for.

This applies when someone uses a land title to secure a loan for any purpose which might not necessarily to acquire land.

• A member will be required to present a valid Land title registered within Republic of Uganda.
• Titles that are jointly owned, the loan will be co-jointly secured and the loan applicants both MUST be members of Khasakh.
• All related costs like cost for search, valuation, boundary opening and mortgages on land etc. will be met by the loan applicants.
• A member will be required to present bank statement to enable the committee access the
• performance of member’s business returns before a loan is approved.
• Member will be required to present a clear repayment plan that detail source of incomes to repay the loan.
• One or all of the following; Bank statement, Mobile money statement, audited financial statements or business cash flow documents will be required for any business referred as source of income in application.
• A member will ONLY receive loan amount applied for after the mortgage deeds have been signed and handed over to Khasakh.
• The loan applicant should provide evidence of ability to pay the loan repayment amount for that loan by either presenting the bank statement or mobile money transaction statement for the last 6 months.

This applies when one is applying for a loan to acquire land and the land MUST be titled land. The following shall apply;

• Present the details on the land- block number, plot number and ownership.
• A search and valuation be carried out on the land before disbursement of the funds to the member.
• A member will have to be advanced the exact amount of money which does not exceed the forced value of land as stated in the valuation report.
• One or all of the following; Bank statement, Mobile money statement, audited financial statements or business cash flow documents will be required for any business referred as source of income in application.

NOTE:

A member with a land loan cannot withdraw from their general saver’s account an amount below what he or she secured the loan at. Say you got a loan when your savings are at 3,000,000/=, at any one moment during loan repayment you cannot withdraw below this amount.