• It gives member access to a new, bigger loan.
• Facility charge of 5% on the balance preceding the month following the application date.
• The new loan falls under the normal terms applicable to all loans.
• The new loan operates on fresh terms, i.e. period and amount payable.

Example

• Shares and Deposits - Kshs 200,000
• Loan Balance at that point - Kshs 100,000
• Facility charge on repurchase at 5% of 100, 000 = 5,000
• Maximum entitlement 200,000 x 4 = 800,000
• Less loan balance and charge 105,000
• Amount paid to member 695,000
• Amount due to the society - Kshs 800, 000 which is repayable within a period not exceeding 48 months at interest rate of 1% per month on reducing balance basis.