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Mwalimu National Sacco Business Loans, Requirement, Terms and Features

Mwalimu National Sacco Business Loans can be accessed by both individual members and members of a group. 

Group loans 

  • The group must have had a banking relationship with Sacco for at least six months. 
  • Group minimum saving of 25% of the loan amount sought. 
  • Loanable to groups of a minimum of 5 members and a maximum of 10 members. 
  • The minimum monthly contribution to business loan savings will be Kes 1,000/=. 
  • Group loans are limited to groups pursuing common interest projects and have verifiable business plans. 
  • Groups to open and maintain FOSA account with Mwalimu National account. 
  • There will be 30 days grace period from the date of loan disbursement. 
  • Graduation from one tier to the next shall be pegged on loan repayment track record and banking relationship through our FOSA accounts. 
  • Members to maintain at least one-month equivalent of loan installment in Biashara account at all times during the loan term.
  • Loan to be secured by conventional collateral and disbursement subject to security perfection and compliance with approval terms. 
  • Groups will be issued with loan officer letters and other relevant loan documents i.e. Loan schedules and letters of set-off. 
  • Applicant’s credit reference bureau reports will be used in application vetting. 

Group loans are disbursed based on the following tiers: 

  1. Tier one KES 30,000 – KES 150,000 – (1.33% pm) within a repayment period of 12 months. 
  2. Tier two KES 150,001- KES 250,000 – (1.33%pm) within a repayment period of 24 months. 
  3. Tier three KES 250,001 – KES 500,000 – (1.33%pm) within a repayment period of 36 months. 
  4. Entrepreneurs must begin at tier one and graduate through the tiers within the program based on the positive growth of the business. 
  5. All group loans attract an interest-free grace period of thirty days.

Mwalimu Sacco Individual Business Loan 

  • Entrepreneurs running businesses that have been in existence for at least 6 months can access individual business loans directly. 
  • Loans granted range between KShs. 150,000.00 to KShs. 5,000,000. 

Terms: 

  • Repayment term is 60 Months
  • The minimum loan amount is KShs. 150,000/= 
  • The maximum loan amount is KShs. 5,000,000/= 
  • Minimum saving of 20% of the loan amount Applied. 
  • The minimum monthly contribution to business loan savings is Kes 1,000/- 
  • Loan to be secured by conventional collateral and disbursement subject to security perfection in all aspects and compliance with Approval terms. 
  • Member to open and maintain a Biashara FOSA account and channel their business proceeds through the FOSA account 
  • Flexible Loan repayment terms synchronized with respective borrower cashflow cycles i.e. (Monthly, Termly, quarterly in advance). 
  • Businesses funded through this product shall be insured through Spire Insurance Brokers Ltd, but the underwriter can be the choice of the member. 
  • There will be 30 days grace period from the date of the loan disbursement. 
  • Members to maintain at least one-month equivalent of the loan installment in Biashara account at all times during the loan term. 
  • Members shall be issued Loan offer letters and other relevant loan contract documents i.e. Loan schedules and letters of set-off. 
  • Applicant’s credit reference bureau reports will be used in application vetting

Mwalimu Senior Saver Loan 

  • Granted to members who have consistently saved Back 
  • Office deposits of up to Ksh.1.5 million and above. 
  • Mwalimu Senior Savers loan enables members to access funds through collaterals. This means members do not need guarantors when applying for a loan. 
  • Loans granted under Mwalimu Senior Savers are NOT subjected to the 1/3 salary rule. 

Product features: 

  • Senior saver must have attained Back office savings of Kes 1,500,000 and above. 
  • The maximum Loan limit is KShs. 15 Million. 
  • Loan repayment is 120 months maximum. 
  • Minimum monthly contribution to business loan savings will be Kes 2,000/- 
  • Loan eligibility subject to member demonstrated ability to service the loan amount sought, this to be ascertained through business appraisal and supporting documentation i.e. books of accounts and bank statements. 
  • There will be 30 days grace period from the date of loan disbursement. 
  • Where a member is undertaking capital projects, appraisal, financing, and administration of the loan proceeds shall be closely monitored and phased disbursement shall be adopted.
  • Businesses funded through this product shall be insured through Spire Insurance Brokers Ltd, but the underwriter can be the choice of the member. 
  • For capital projects, a member must raise 20% of the project cost, and Sacco financing is limited to 80% financing. 
  • Senior saver to open and patronize Biashara FOSA accounts and channel their business proceeds through the FOSA account 
  • Flexible Loan repayment terms synchronized with respective borrower cashflow cycles i.e. (Monthly, Termly, quarterly in advance). 
  • Members shall be issued Loan offer letters and other relevant loan contract documents i.e. Loan schedules and letters of set-off. 
  • Applicant’s credit reference bureau reports will be used in application vetting. 
  • Processing fee at 2% 

Motorcycle Loan 

  • Members can source the motorbikes from dealers of their choice and brand of their choice and submit a proforma invoice for the motorbike being financed 30% of the proforma invoice price shall be raised by the member and placed as a deposit with Mwalimu National Sacco. 
  • Minimum monthly contribution to business loan savings will be Kes 1,000/-
  • Motorbikes shall be jointly registered between Mwalimu National Sacco & the member before payment is done to the dealer. 
  • The financed motorcycle shall always be comprehensively insured, and Mwalimu National Sacco interest noted as “financier/First loss payee” Insurance shall be done through Spire Insurance Brokers Ltd. 
  • Members shall be issued with loan offer letters and other relevant loan contract documents i.e. loan schedules and letters of the set–off. 
  • Applicant’s credit reference bureau reports will be used in application vetting.

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Mwalimu National Sacco Business Loans, Requirement, Terms and Features

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