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    Frequently Asked Questions?

    Please read questions below and if you can not find your answer, please send us your question, we will answer you as soon as possible.


    How can one become a member?

    Like any other co-operative society, any one can become a member by the virtue of buying shares and subcribing for a nominal deposits .

    How do I benefit from shares and savings (deposits)?

    You are guaranteed  favorable and competitive interest and dividend every year. The deposits enable you to access credit facilities,elect or be elected to the board of directors or as a delegate

    What are benefits of joining the SACCO?

    You will enjoy various loan products that will enable you to grow financially. There are also various savings products that help you save and invest wisely.

    What do I need when applying for a loan?
    • Fully filled loan application form
    • Must have been an active member for over 3 months
    • Must have collateral/guarantors who must be active members and have contributed deposits .Guarantors’/collateral provided and applicants shares MUST be equal to or more than the loan applied for.
    What security measures has the Sacco put in place to ensure it’s stable and competitive?

    The Board and Management are Managing the Sacco as per the Co-operative societies ACT,Rules and Sacco By –Laws. The Sacco has implemented the use of Corporate Governance and Code of Ethics hence stability is guaranteed.The Sacco holds AGM’S yearly where reports and accounts are presented to the members.

    What do I need to do when withdrawing from the society?
    • A member needs to inform the society in writing of his intention to withdraw.
    • A notice of sixty days is required in case of any refunds due to the member.
    • A member needs to inform all loanees that he has guaranteed to seek alternative guarantors.
    Who is eligible to access Universal Traders Sacco Credit facilities?

    Members admitted in accordance with the membership policyMembers admitted in accordance with the membership policy.

    When does a member become eligible for a loan?

    A member becomes eligible after a minimum membership period of three months and on fulfilling all requirements of a specific loan product.

    What is the difference between Capital Shares, Deposits and Savings?

    Capital Shares:
    ·         The amount representing a member’s portion in the equity of the society as a co-owner.
    ·         Shares are not used to determine the eligibility of a borrower or a guarantor.
    ·         Shares are not withdrawable but are transferable.
    ·         Every member must make regular deposits towards member deposits (normal shares) in  accordance with the Savings policy.
    ·         They are not withdrawn in part or in full as long as a person is a member of the Sacco.
    ·         These deposits may be used to determine the eligibility of a borrower or a guarantor.

    In addition to shares and deposits a member may invest in a saving account. The Sacco provides the following savings products

    §  Current Account §  Corporate Current  Account §  Toto Account §  Young Turks
    §  Mwethya §  Akiba savings §  Fixed deposit


    Does interest charged by the Sacco fluctuate during the term of the loan?

    No any amendments on interest will affect new applications only.

    Who decides on what interest to charge?

    Interests on loans are reviewed from time to time by the BOD on recommendation of Management.

    Can a member capitalize interest rebates or dividends to boost ones shares?

    Yes, that is allowed. All that one needs to do is to instruct in writing

    Can a member use dividends or interest rebates to clear loans?

    Yes by communicating the same in writing

    What are the acceptable Securities for a loan?

     i. Guarantors
    ii. Deposits in the SACCO
    iii. Land
    iv. Buildings
    v. Guarantees
    vi. Corporate guarantee
    vii. Share certificates
    viii. Vehicles
    ix. Endowment Insurance policies

    Who is eligible to be a guarantor?

    Any active member in good standing is allowed to be a guarantor provided that one has not over guaranteed.A guarantor must be willing and able to repay the loan guaranteed if the loanees fails to pay

    What is the role of a guarantor?

    Guarantors are jointly (together) and severally (individually) liable for the repayment of a loan in the event of the borrower’s default.

    What are the rights of a guarantor?

    i. The right to obtain a copy of the letter of guarantee or contract of guarantee and any other documents in relation to the loan transaction
    ii. The right to the information on the outstanding balance of the account of the borrower with the Society subject to the borrowers consent.
    iii. The right to call upon the borrower to pay off the loan to release him from all his liabilities under the guarantee. This right can be exercised at anytime and even before the Society has called upon the borrower to pay the debt.
    iv. The right to be indemnified by the borrower for any payment made to the Society. This means that he can sue the borrower for the amount that he has paid to the Sacco.

    What does a borrower need to know about a the loan the he is guaranteeing?

    i.             Loan  amount

    ii.            Repayment period

    iii.           Applicant source of income

    iv.           Applicants term of employment
    v.            Applicants retirement date

    vi.           Applicant’s contact details

    vii.          Any other details relating to the applicants character

    What are available disbursement channels?

    i. EFT (Electronic Funds Transfer)

    ii. Cash withdrawal from the counter

    iii. Mobile Banking

    iv. ATM

    Can one clear a loan in full before repayment is over?

    Yes, that is allowed and does not attract early clearance charge.