Sacco Loan & Deposit PolicyWritten by Super User
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Only eligible members of SACCO will qualify for loans. Members who are in arrears in loan repayment or shares/deposits contributions will not qualify for loans.
A member can only qualify for loan after a minimum membership period of six (6) months and having saved not less than kshs. 3000 in deposits.
The maximum loan entitlement for emergency and normal loan to any member at any time will not exceed (3) times of the member’s deposit taking into accounts deposit boosting provided the amount of loan does not exceed the total member’s monthly net statutory pay.
Note: A member without common bond can apply for loan 3 times her/his deposit subject to getting guarantor(s) from members.
Income ability for members without common bond who are not in formal employment will be determined by 4 times the average monthly total remittance to the society for the last six (6) months.
Member can contribute as much deposits he/she wishes, whether through payroll check off or otherwise. However deposits/ contributions in any one month that is in excess of the member’s one third gross salary will be considered as boosting. Deposits/contributions by members without common bond in excess of his/her average monthly contribution for the last 12 months will be considered as boosting.
Excess deposit contributed by way of boosting will not be considered when computing member’s loan entitlement unless such deposit have been invested with Sacco for not less three (3) months cumulatively.
A member who transfers his/her deposits from another Sacco or from another member within the Sacco will only qualify for the loan after six (6) months waiting period as is the case for new members