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.
Like any other co-operative society, any one can become a member by the virtue of buying shares and subcribing for a nominal 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
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.
- Fully completed loan application form
- Minimum three guarantors who must be active members and have contributed deposits for at least six months. Guarantors’ and applicants shares MUST be equal to or more than the loan applied for.
- Employer MUST sign and rubber stamp the application form.
- Outstanding loan by the applicant, MUST be cleared before a loan of the same kind is approved.
- A most current pay slip certified by the applicant’s employer’s payroll officer, MUST be attached to the application.
- A copy of an acceptable form of identification (National ID/Valid Passport) MUST be attached to the application
- Must have been an active member for at least six months.
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.
- 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.
Members admitted in accordance with the membership policyMembers admitted in accordance with the membership policy.
A member becomes eligible after a minimum membership period of three months and on fulfilling all requirements of a specific loan product.
· 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.
Interests on loans are reviewed from time to time by the BOD on recommendation of Management.
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
ii. Deposits in the SACCO
vi. Corporate guarantee
vii. Share certificates
ix. Endowment Insurance policies
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
Guarantors are jointly (together) and severally (individually) liable for the repayment of a loan in the event of the borrower’s default.
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
i. EFT (Electronic Funds Transfer)
ii. Cash withdrawal from the counter
iii. Mobile Banking
Yes, that is allowed and does not attract early clearance charge.