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Loan Policy

Loan Policy

 


To Qualify For A Loan

  1. No member of Mhasibu Sacco shall belong to another Sacco except in accordance with section 18 of the Co-operative Societies Act of 1997. 
  2. Every member is entitled to a maximum amount that shall not exceed 30 million.
  3. A member must have completed at least 6 months and contributed the minimum Share Capital of KES 10,000 and saved not less than KES. 6,600, as deposits. (The minimum monthly deposit is KES 1,100)
  4. Savings contributions paid in lump sum for the purpose of securing a loan must remain in the Sacco for at least 6 months.
  5. Unless the loan applied for is equal to or less than a member's deposits, it must be secured by guarantors', log books, share certificates of quoted companies, insurance policies or any other financial  instrument approved by the board.
  6. Emergency and School fees loans shall all be repaid within 12 months.
  7. A member must undertake to pledge salary from future employer(s) toward loan repayment.
  8. Repayment period is determined by Management Committee, but in all cases shall not exceed 48 months.(This period is under review for increment).
  9. Savings contributions paid in lump sum for the purpose of securing a loan must remain in the Sacco for at least 6 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. To withdraw membership, a member will be required to give a written notice of up to 60 days.
  12. A member who withdraws from the society and rejoins later will be treated as a new member for the purpose of the loan policy.