The loan amount is based on the total value of the asset being used as collateral.
The loan amount can be up to four times the total member deposits providing a substantial borrowing capacity.
A competitive interest rate of 1% per month on the reducing balance. This means that interest is charged on the outstanding balance of the loan, reducing as the loan is repaid.
The loan is repayable over a period of 48 months, allowing for manageable monthly payments.
Members have the option to top up their loan amount, subject to a one-time fee of 5% on the additional balance. This feature provides flexibility for additional financing needs.
Depending on the asset, applicants will need to provide relevant documents such as the vehicle’s registration documents or a purchase agreement for land or property.
Documents such as recent pay stubs, bank statements, or tax returns to demonstrate the ability to repay the loan. This helps the Sacco assess the member’s financial stability.
An appraisal or valuation of the asset (car, land or property) may be required to determine its current market value. This helps the Sacco to determine the loan amount and terms.
The loan must be fully guaranteed, ensuring security for the Sacco.
