Mwalimu Sacco Types of Loans

There are three types of loans offered by Mwalimu Sacco.The loans include Wezesha Loan,FOSA loan,and Business loans. Each loan has its own benefits and targeted groups.

BOSA LOAN PRODUCTS

(1)     Wezesha Loan 

Wezesha (to enable) loan is a product where members with the ability to pay/service a loan but have not saved enough shares to qualify for one, can access the facility from Mwalimu in form of an advance while we retain part of it as savings. One is able to access a loan of up to Ksh.600, 000 and 1/3 of it is retained as their shares.

Terms and conditions of wezesha loan

1. The minimum period for a member to qualify shall apply as per the sacco by-laws.
2. Due to some extra resources that shall be needed for processing the loan,2% wezesha processing fee shall be charged on the amount to be advanced.
3. The Wezesha loan should run for a maximum of 36months.
4. The shares boosted shall earn dividends on pro-rata basis.
5. The maximum loan amount to be issued shall not exceed Ksh.600, 000.
6. The loan should be fully guaranteed.
7. This product is for new members only.
8. Rate is 13% p.a on reducing balance.

(2)     Emergency Loans

1. Granted for unseen circumstances.
2. Repayable in 12months.
3. Only one emergency loan can be granted at a time.
4. Given within a member’s entitlement.
5. Maximum limit is a member’s deposits x5 (subject to 1/3 salary rule).
6. Applicable interest rate is 1%p.m on reducing balance.

(3)     School Fees Loans

1. Granted for educational purposes.
2. Repayable in 12months.
3. Only one school fees loan to be granted at a time.
4. Given within a member’s entitlement.
5. 1% p.m interest rate on reducing balance.
6. Maximum limit is a member’s deposit x5(subject to 1/3 salary rule).

(4)     Normal Loans

1. Granted as short-term loans for investment purposes.
2. Repayable in 36months.
3. One normal loan to be granted at a time.
4. Limit is a member’s deposits x3(subject to 1/3 salary rule).
5. 1%p.m on reducing balance.

(5)     Development Loans

1. Granted as medium-term loans for investment purposes.
2. Repayable in 48months.
3. One development loan granted at a time.
4. Maximum limit is a member’s deposits x4(subject to 1/3 salary rule)
5. Applicable interest rate is 1.17%p.m on reducing balance.

(6)     Super Loans

1. Granted as long-term loans for investment purposes.
2. Repayable in 60months.
3. Only one super loan granted at a time.
4. Maximum limit is a member’s deposits x4(subject to 1/3 salary rule)
5. Interest is at 1.20%p.m

(7)     Vision 84

1. Long term loans for investment purposes.
2. Repayable in 84 months
3. Limit is a member’s deposits x5(subject to 1/3 salary rule).
4. Interest rate is 1.29 p.m on reducing balance.

WELFARE SERVICES.

Burial Benevolent Fund-BBF.

• Used to accord members and their immediate families a decent burial
• Monthly contribution is ksh.150

Risk fund.

1. A compulsory insurance scheme for all members.
2. Monthly contribution is ksh.300. This is used to pay the outstanding loans of deceased members and double the shares to be paid to the nominee(s)

For efficiency in payment, the members should:

1. Confirm and update their nominees with the sacco to avoid legal tussles. In case of more than one nominee, clearly indicate the percentage allocation for each nominee.

FOSA PRODUCTS

FOSA Account

Our FOSA members can open one or more of the following accounts:

•  Savings Accounts
•  Save as you earn (SAYE) Accounts
•  Fixed Deposit Accounts
•  School Fees Accounts
•  Holiday Accounts
•  Junior Accounts

Benefits of a FOSA Account

• Free Account opening.
• No ledger fees/ monthly charges.
• Competitive interest rates.
• Affordable charges.
• No charge for idle accounts.
• Quicker or faster Loan processing.
• Faster payment of Dividends, Burial Benevolent fund & Risk Claims.
• Bridging/Loan Top up facility available.
• 1 Sacco Link ATM card
• For Credit/Advances.
• Legibility for Business Loans.

   Requirements for opening a FOSA Account

• 2 coloured Passport Size Photographs.
• Copy of payslip.
• Original and a photocopy of the National Identity Card.

FOSA Advance

Salary in Advance

•  Maximum amount is 80% of the net salary or S.A.Y.E. after the recovery of due
  liabilities.
• Interest rate is 5% of the amount borrowed.
• Interest and principal amount is recoverable once at the end of each month.
• A customer’s salary or S.A.Y.E. must be passing through W.S.F.

BUSINESS LOANS

Mwalimu Business Loans is a Micro Finance program of Mwalimu National. The program has disbursed over KES 800million thereby benefiting more than 4000 members since inception. It’s designed for Mwalimu National members who are engaged in running of income generating activities.

The program encompasses the Provision of loans to members for Business Development, encourages savings and Long Term Investments.

Policy

Business Loans are disbursed to individual members within a group for expansion of existing income generating ventures. Such businesses must have been in operation for at least 6 months.

Group loans are done based on tiers.

1. Tier one KES 30,000- KES 150,000 (1.33% pm) payable in maximum 12months.
2. Tier two KES 151,000-KES 250,000 (1.33%pm) payable in maximum 24months.
3. Tier three KES 251,000 –KES 500,000 (1.33%pm) payable in maximum 36months.

One has to start from tier one and graduate through the tiers within the program based on business ability. If successful, at tier three one can move to borrow as an individual client without the need of group.

Individual loan.

Clients with well established businesses, can access business loans directly without group requirement. The minimum loan for individual client is KES 501,000 and a maximum of KES 5,000,000.

Terms

We offer business loans at interest rates of 1.25% per month.  Our repayment period is between 3-36 months depending on amount borrowed.