General Policy
- Membership Requirements
A member must have completed at least 6 months of membership and contributed a minimum of Kshs. 9,000, with at least Kshs. 1,500 contributed consecutively each month at the time of application.
- Loan Security
The primary security for any loan is the member’s savings.
- Approval Process
All loan application forms must be submitted to the office for approval by the credit committee, which convenes in the middle and at the end of each month.
- Rejoining Members
Members who withdraw and later rejoin the society will be treated as new members for loan purposes.
- Lump Sum Contributions
Savings contributions made in lump sum to secure a loan must remain in the Sacco for at least 6 months.
- Loan Entitlement
All loans must be within the member’s entitlement, and any amount exceeding the savings must be fully guaranteed.
- Multiple Loans
A member may have more than one loan, provided all loans are within their entitlement limits.
Loan Products
| Loan type | Maximum Amount | Repayment Period | Interest rate per Months | Multiplier |
| Emergency Loan | 100,000 | 6 months | 10% upfront | 3x |
| School fees Loan | 100,000 | 12 months | 1.2% | 3x |
| Biashara Loan | 200,000 | 12 months | 1.5% | 3x |
| Development Loan | 1,500,000 | 36 months | 1.2% | 3x |
| Investment Loan | 5,000,000 | 60 months | 1.2% | 3x |
| M-PEFA loan | 10,000 | 1 month | 7.5% | Limited to only active members with savings above Kes 10,000 |
| Institutional Loan | 5,000,000 | 60 months | 1.2% | 3x |
| Top up loan | 1,500,000 | 36 months | 1.2% | 3x |
| Karibu Loan | 20,000 | 4 months | 10% upfront | Check off |
Note:
All loans have to be secured fully with members’ deposits, guarantors or collateral. If borrowing is within member’s savings a member will be eligible to borrow up to 90% of his/her savings. Key elements that are considered when one is borrowing are as follows:
- Consistent in savings old member 3 months of consecutive savings and new member 6 months of consecutive savings. An account has to be active.
- Duly filled up loan form attached with necessary documents like copy of ID (applicant & guarantors), Bank statement/Mpesa statement and current Payslip.
- Has no default history
- Not listed negatively in CRB.
Other Regulations
The total loan amount granted will not exceed three times the member’s current deposit.
A loan applicant must have completed six calendar months of membership.
The loan repayment period is specified in each loan product.
- All loans must be guaranteed by a minimum of two eligible guarantors.
- The combined shares of the loanee and the guarantors must fully cover the loan amount.
- No member can be a guarantor for more than three loans at any given time.
- Guarantors cannot resign from their role unless they find another member to take their place.
- Photocopies of National ID cards must be attached for all guarantors.
A member can apply for loans up to three times, subject to their ability to repay.
All loans must be repaid within the specified period. Failure to do so will incur an interest charge of 20% on the extended period, which will be limited to one year.