Development loan

Requirements and Features:

1. Be a Sacco member with consistent contributions for a minimum of 3 months. Defaulters don’t qualify. Additionally, you will need to provide a collateral to qualify for the loan.
2. You will be eligible for a loan of up to four times (x4) your current total Main Savings Account contributions..
3. The amount borrowed shall not exceed KES 6 Million; however a higher loan amount may be approved subject to availability of funds.
4. The main purpose for the loan will be strictly towards property purchase or construction of property.
5. The loan shall attract an interest rate of 13% per annum on a reducing balance.
6. The repayment period shall be a maximum of 60 months.
7. Pay a non-refundable loan-processing fee of 1% of loan amount subject to a minimum of Kes 10,000.
8. Show proof of ability to repay the loan – paystubs or other supporting documents
9. The Security shall be the member’s savings or other acceptable securities
10. If you use a developed property (e.g. a house) as collateral, the loan value will not exceed 80% of the market value of the property used as a collateral. We will discount the forced values depending on the location (City- 90%, County Headquarters- 80% and Rural- 50%)
11. If you use an undeveloped property (e.g. a plot) as collateral, the loan given will not exceed 75% of market value of the undeveloped property used as a collateral. We will discount the forced values depending on the location (City- 90%, County Headquarters – 80% and  Rural- 50%)

The following are the requirements:

If you are employed:

1. 3 latest paystubs
2. Letter from employer confirming employment status
3. Bank statements for the latest 3 months
4. Copy of Kenyan ID or Kenyan valid Passport
5. Copy of the latest W2 Form issued by the employer
6. Security – Copy of the title document of a property acceptable by the Sacco (Minimum lease term 35 years)

If you are Self-employed:

1. Bank statements for the latest 12 months
2. Copy of Kenyan ID or Kenyan valid Passport
3. Business registration certificate
4. IRS Business Tax Returns for the latest filing year
5. Security – Copy of the title document of a property acceptable by the Sacco (Minimum lease term 35 years)
6. 1099 Forms and/or any other supporting documents

Collateral: Securities accepted by the Sacco

The collateral to be used must be located and registered in Kenya. The following are the types of security/collateral that are acceptable.

1. Legal Charge: This form of security is used in cases where property in form of land or lease is used as collateral. The security is perfected by creating a charge and registering an encumbrance against the property being held as collateral (City – 90%, County Headquarter – 80%, Rural – 50%)

How to apply for a Development Loan:

1. Click on member login and complete in its entirety.
2. Depending on your employment status (employed or self-employed), attach copies of supporting documents.
3. Pay a non-refundable loan processing fee of 1% of loan amount subject to a minimum of $100.