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Credit Products

The Society shall give loans and advances of tenors ranging from one month to 72 months or such other tenor as may be determined by the BOD. The amount granted to any one individual will range from 1000 to 10% of core capital or as may be determined by the board of directors from time to time.
The following loans are available but their names and attributes are subject to review by the Board of Directors in accordance with the provisions of this policy.

The loans will be broadly be classified as;

  1. Personal loans
  2. Business loans
  3. Other loans


1. Personal Loans

1.1 Development loans

Development loans are Normal or Super. The two loans differ in size and price.
a) Development loans shall be granted for investment purposes
b) To qualify for a loan, an applicant must have completed three months membership or such other period as the Board may determine from time to time
c) Applicants may be required to attach Supporting document as proof of project viability
d) Applicants must attach two most recent original pay slips or any other documents as proof of ability to repay the loan applied.
e) Loans will be repaid from a member’s salary or from members other incomes and no member will be subjected to deductions in excess of 2/3rds of his monthly salary or income. Where total deductions exceed two thirds of a member’s salary, the loan shall be reduced accordingly
f) The total of all outstanding loans, including emergency and school fees, and supa-sosa must not exceed three times an applicant’s deposits.
g) Every loan must be guaranteed.
h) Other securities such as land, cars, shares, insurance policies and share certificates may be pledged as security.



1.1.1 Normal

a) Repayment period will be 48 months. However a Member who qualifies for a loan equivalent to two times of his deposits because of 2/3 rule may be allowed to repay his loans within a period of sixty months.
b) The interest rate shall be 1% per month on declining balance or as shall be determined by the BOD from time to time
c) The total of all outstanding loans, including Supa-Sosa, emergency and school fees must not exceed four times a member’s deposit.


1.1.2 Super Loan

a) Repayment period shall be 60 months or as may be determined from time to time.
b) The interest rate shall be 14% per annum on declining balance or as may be determined from time to time.
c) The total of all outstanding loans, including Supa-Sosa, emergency and school fees must not exceed four times a member’s deposit.
d) Salary must be channeled through FOSA

1.1.3 Premium Loan

a) Repayment period shall be 72 months or as may be determined from time to time.
b) The interest rate shall be 14% per annum on declining balance or as may be determined from time to time.
c) The total of all outstanding loans, including Supa-Sosa, emergency and school fees must not exceed four times a member’s deposit.
d) A Member need to have saved up to 1million shillings in deposits, the loan is x4 of the deposits

1.1.4 Mwangaza Loan

a) Repayment period shall be 48 to 60 months or as may be determined from time to time.
b) The interest rate shall be 14% and 18% per annum on declining balance or as may be determined from time to time.
c) Maximum amount of the loan is 2.5 million shillings
d) It is a salary based loan and your salary need to be processed through the Sacco

e) Minimum Alpha deposit should be 100,000



1.1.5 Flex loan

a) Members who are eligible for this loan are those who channel their salaries through Stima Sacco.
b) Deductions towards this loan repayment shall not be more than 30% of regular net salary
c) Application shall be accompanied by four original of latest pay slips
d) Loan must be fully guaranteed by eligible guarantors.
e) Repayment period shall be up to 24 months or as may be determined from time to time.
f) The Interest rate is 16% per annum on declining balance or as may be determined from time to time
g) Top up may be allowed after a period determined by the BOD at a 2.5% commission or as the BOD may decide. Premature top up shall attract an additional 2.5% commission.
h) The Loans applicant must open a Flex saving account and undertake to save a minimum of kes1000 or 0.5% of loan whichever is higher.
I) Maximum loan amount will be Kshs 1,000,000.00 or as will be determined from time to time.

 

1.1.6 Vuka Loan

a)Used to buy off bank loans

b)*5 of Alpha Deposits

c) Salary must be channeled through Stima Sacco

d) Loan repayment period of 72 months at 16%

e)Interest rate of ksh7500

1.1.7 Car Scheme

a)Purpose of the loan is purchase of motor Vehicle

b)Must be an employee of KPLC, KenGen, or Nuclear Energy

c)The loan must be approved by the employer

d)Loan tenor is a maximum of 60 months

 

1.2 Instant loans

a)      a)Instant loans shall be granted for urgent unforeseen financial needs

b)      b)To qualify for a loan, an applicant must have completed three months membership or such other period as the Board may determine from time to time

c)      c)Applicants may be required to attach Supporting document as proof of project viability

d)      d)Applicants must attach two most recent original pay slips or any other documents as proof of ability to repay the loan applied.

e)     e) Loans will be repaid from a member’s salary or from members other incomes and no member will be subjected to deductions in excess of 2/3rds of his monthly salary or income. Where total deductions exceed two thirds of a member’s salary, the loan shall be reduced accordingly

f)      f) Every loan must be guaranteed.

g)Other securities such as land, cars, shares, insurance policies and share certificates may be pledged as security.

 


1.2.1 Emergency loan

a) Emergency loan shall be granted for unforeseen circumstances.
b) The total of all outstanding loans, including school fees, emergency and development loan, must not exceed three times a member’s deposit.
c) Repayment period shall be twelve months
d) The interest rate shall be 1% per month



1.2.2  School fees loan

a) School fees loan shall be granted for school fees purpose,specifically for msingi bora account holders.
b) Repayment period shall be 12 months
c) The interest rate shall be 1% per month
d) The total of all outstanding loans, including emergency and development loan, must not exceed three times an applicant’s deposit.

e)The loan is upto 75%of your savings.

f)Amount is payable directly to the school.


1.2.3 Prime advance

a) Members who are eligible for this loan are those who channel their salaries through FOSA.
b) Maximum amount will be 200,000.00 or as may be determined from time to time.
c) Interest rate is 1.5% per month on declining balance or as may be determined from time to time
d) To up may be allowed at a 2.5% interest or as  the BOD may decide
e) Repayment period will be 12 months or


1.2.4 Msingi Bora Loan

Helps the member to pay children's school fees.
a) The loan must be repaid within 12 months or as may be determined from time to time.
b) Interest shall be 0.833% of the cleared debts.
c) A Member must have a Msingi Bora account and must have saved in the account for 3 years

d)The money is paid directly to the school

e) Loan amount is up to 75% of Msingi Bora deposits 

 


1.2.5 Sosa

This loan facility will cater for members who have Super Loan or normal and need additional funds.
a) The loan amount will be 4 times of deposits.
b) Repayment period shall be 15 months
c) Interest rate currently at 1.25% p.m. on declining balance
d) The loan will be secured by 4 guarantors.

1.3. Household Items


1.3.1 Makeover loan

This loan enables members to acquire products like Tanks, mattresses, laptops, bicycles scooters, fridge cookers TVs etc.
a) Maximum loan Kshs 200,000 subject to the ability to repay.
b) Interest rate shall be 18% p.a. on declining balance
c) Repayment period shall be 15 months
d) Security will be 2 guarantors.

2. Business Loans

For business, the Sacco shall offer the following products;

a) Working Capital

b) Asset Finance

c) Trade Finance

These products will be offered to

Individual running businesses, corporates( Limited liability companies engaged in business)  investment groups and chamas and Micro leaders such as Saccos, MFIs and NGOs

2.1.1 Working Capital

a)This will be loan to individuals whose source of income is business, corporates and groups

b)Interest rate will be 1.35% per month

c)Loan tenor will be a maximum of 36 months

d)3x members Alpha deposits

 

 

2.1.2 Working Capital school

Will be issued to individuals, corporates and group members whose income is from educational institutions business

a)Must have operated the business for more than 6 months

b)Interest rate of 1.35% per month

c) Maximum loan loan tenor of 36 months

d) Mode of payment internal standing order

e) Frequency of  repayment: termly

 

2.2.1 Asset Finance

a)To finance assets that directly contribute to the business income of the applicant

b)The interest rate of the facility is 1.35% (16.2%pa) on reducing balance

c) repayment period 36 months

d) The loan will be paid directly to the vendor of the asset

e) Maximum loan is 10,000,000

f)Frequency of repayment is monthly

g)Minimum of 4 guarantors for loans upto 2M

h)Loans above 2M will require a tangible collateral

i)Self guaranteed loans max of 90% of the Alpha deposit


2.2.2 Bridging Finance

helps the member to take a loan to clear outstanding debts.
a) The loan must be repaid within one month or when the anticipated loan is granted.
b) Interest shall be 5% of the cleared debts.
c) A Member who has not met conditions for reapplication period will be charged an additional 2.5% of the cleared debts.



2.2.3 Discounting

This allows a member to get the value of a definite receivable earlier than its due date.
a) Such receivables include but not limited to:-
i. Loans approved and are due to be granted in one month’s time.
ii. Refunds of deposits those are due for payment within sixty days
iii. Anticipated incomes
iv. An un-cleared but reliable cheque
b) The discounted amount will be charged interest of 2.5% per month.
c) Maximum repayment period is 2months.


2.2.4 Fahari loan

The eligible applicants for this loan are registered groups on the following condition
a) To be eligible to borrow the group must contribute alpha deposits consistently for six months.
b) Loan amount will be up to three times of the group savings or ten million whichever the lower subject to ability to repay within 70% of monthly savings
c) Attach a Certificate of registration
d) The interest rate to be 1.25% p. Month on declining balance or as may be determined from time to time
e) Maximum repayment period 36 months as may be determined from time to time
f) Security will be tangible collateral or guarantee by the group members.
g) The minimum monthly contribution after borrowing must be at least 1% of the loan.
h) The minimum monthly contribution after borrowing must be at least 1% of the loan.
i) Application must be signed by the authorized signatories.


2.2.5 Insurance premium finance loan

This loans is for the purpose of paying insurance premium
a) The loan amount will be equivalent to the actual insurance requirement subject to ability to repay.
b) The loan must be sufficiently guaranteed
c) Interest rate shall be 1.% per month on declining balance
d) Repayment period shall be 10months


2.2.6 Biashara loan

This loan shall be granted to business people who bank their business income regularly at FOSA
a) Maximum loan Kshs 1,000,000 subject to the ability to repay
b) Interest rate shall be 1.5% p.m. on declining balance
c) Repayment period shall be 36 months
d) Security will be 4 guarantors. Or collateral

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