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Lending and Membership Terms

To Qualify For A Loan

  • A member must have completed at least 6 months and contributed not less than Kshs. 6,000.
  • 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 6 months.
  • A member must undertake to pledge salary from future employer(s) toward loan repayment.
  1. Interest on all loans shall be 1% per month on a reducing balance basis.
  2. No member of Mhasibu Sacco shall belong to another Sacco except in accordance with section 18 of the Co-operative Societies Act of 1997.
  3. The maximum amount of total loans shall not exceed 15 million.
  4. Emergency loans include sudden hospitalisation, funeral expenses, court fines, etc.
  5. Repayment period is determined by Management Committee, but in all cases shall not exceed 48 months.
  6. Emergency and School fees loans shall be repaid within 12 months.
  7. Unless the loan applied for is equal to or less than a member's shares, it must be secured by guarantor's, log books, share certificates of quoted companies, insuarance policies or any other financial instrument that may be approved by the board.
  8. To withdraw membership, a member will be required to give a written notice of upto 60 days.
  9. A member will be required to maintain a monthly share contibution of not less than two thirds of his/her monthly contribution prior to the loan for at least six months.
  10. Lump sum loan repayments for the purpose of borrowing a new loan must be retained in the Sacco for at least 3 months prior to borrowing again.
  11. Normal loan applications must be registered in the Society's offices before the 10th and 25th of every month.