Mwalimu National Sacco Business Loans can be accessed by both individual members and members in 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.
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Group loans are disbursed based on the following tiers:
- Tier one KES 30,000 – KES 150,000 – (1.33% pm) within a repayment period of 12 months.
- Tier two KES 150,001- KES 250,000 – (1.33%pm) within a repayment period of 24 months.
- Tier three KES 250,001 – KES 500,000 – (1.33%pm) within a repayment period of 36 months.
- Entrepreneurs must begin at tier one and graduate through the tiers within the program based on the positive growth of the business.
- 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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