Loans

Types of Loans

There are six types of loan products offered by the society to its members. This consists of two categories namely the generic loan products and new products.

1. The Short-term Loan

This is commonly known as emergency loan which is payable within a maximum period of six months and the maximum amount lent out is four million shillings.commonly known as emergency loan which is payable within a maximum period of six months and the maximum amount lent out is four million shillings.

These include:-

  • Education Savings and Loan product
  • Emergency Loan
2. The Long-term Loan

This is given out against a member’s savings. The savings are multiplied by two to form the amount of loan or multiplied by three if a member has security to back up the savings. The maximum repayment period for this category is thirty-six months (Three years). The security to be used should be in the names of the member and the recognized legal security is a land title.

These include:-

  • Asset Financing Loan
  • Motor vehicle loan
  • Housing Loan

Access to the above loan products is dependent on the member fulling the associated terms and conditions. Members are required to repay their loan obligations in line with the agreed terms and conditions. Failure to abide by the said terms will leave the SACCO with no other option except to apply forced recovery approaches.

The SACCO will continue to undertake research in order to improve the existing products and/or develop new ones that are relevant to members.