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This is a type 1 loan.
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Secured by a clean title deed for properties and
land in urban and rural municipalities; with no encumbrances.
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This is a collateral based loan. It’s based on
acceptable collaterals of Land at 90 % total forced sale Value and/or 75% total
of Market Value (whichever has the higher value).
·
The security for this loan is an acceptable
collateral.
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The SACCO shall undertake valuation of the land
on behalf of the member though the expenses shall be charged to the member and
offset from the loan.
·
The SACCO shall undertake the legal charge over
the property using the SACCO lawyer. The
expenses shall be charged to the member and offset from the loan.
·
The multiplier effect is 4 times deposit.
·
The repayment period is categorized as follows
72 months at 1.0833% interest rate on reducing balance. Ability to pay: Pay slip within the 1/3 rule
or other proven and acceptable sources of income.
·
One
must have a minimum a share capital of KShs. 30,000
·
The minimum monthly contributions/savings shall
be KShs. 10,000 after taking this product.
·
The processing time for this loan is about
3-months.
·
The SACCO shall keep the applicant’s title for
the duration of the loan.
·
After full repayment, the applicant shall get
back the title and undertake the discharge process on his own.
·
This loan cannot be refinanced.
