This applies to members of the SACCO who have contracts to provide services. The following features shall apply to this loan;
- A member should be a principal shareholder in the company contracted for services. This is verified by providing copies of the company documents.
- The disbursement shall be phased according to the nature of the contract.
- A post-dated cheque on the member’s account.
- A member should have at least 10% of the loan amount in SACCO shareholding and 10% in savings.
- A bank statement for the last 6 months on the account for which the cheque has been provided.
- A signed contract between the member and the contractor shared with the SACCO.
- The repayment amount will vary depending on the payment terms outlined in the contractual agreement and will not be monthly.
- The repayment period shall not exceed the contract period stated in the contractual agreement between the member and the contractor.
- An interest rate at 16% per annum reducing balance