To qualify for a loan:
- A member must have completed at least 6 months and contributed not less than Kshs. 9,000.
- 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 3 months.
- A member must undertake to pledge salary from future employer(s) toward loan repayment.
- An outstanding Normal, Emergency and School fees loan must be cleared before a new loan is granted
- Members must have been contributors for a minimum of six months consistently and have a minimum shares capital of Ksh 5,000 and 9,000.00 for deposit contribution.
- Photocopy of Guarantors I.D and the Borrower’s I.D should be attached to this form
- The total loan granted shall not exceed two times a member’s shares subject to the maximum of 5% of the society’s share capital and reserve and availability of funds.
- A member shall not withdraw his/her shares unless all loans are paid in full and loans guaranteed are cleared.
- A member may not be allowed to suffer total deductions including loan repayment in excess of two-third of the gross salary.
- Guarantors who must be members of the society shall not guarantee more than their total shares.
- All loans must be guaranteed.
- Normal loans will be granted with a maximum repayment period not exceeding 36 months.
- All other loans will be granted with a maximum repayment period of 12 months.
- Emergency and school fees loans shall be approved on production of genuine supporting documents.
- Emergency and school fees loans that are more than the shares held will require other securities.
- Emergency and school fees loans that are less than the shares held will have the existing shares as security
- Loan application form must be fully completed and supported with current pay slips or any other relevant prove of income.
- School fees and other medical expenses shall be paid directly to schools and hospitals respectively where applicable.
- All members shall be required to rest for at least 3 months after finishing on Normal loan before applying for another.
- In-case of delay or default in loan payment there will be a 5% penalty charged against the principal balance every month.
- Members who have defaulted on shares or loans shall not be eligible for any loan.
- Lump sum loan repayments for the purpose of borrowing a new loan must be retained in the Sacco for at least 1 month prior to borrowing again.