Lending conditions
Check-off members checklist
- Provide dully filled loan application form
- Provide 2 current payslips (consecutive months)
- Check-off members’ may also provide alternative sources of income (Bank statement or Mpesa Paybill/Till statement) as proof of ability to repay.
- Provide required number of guarantors and/or collateral for loans secured with title deed or logbook
- Provide additional supporting documents where required, for example, fees structure, hospital bill.
Non- check off checklist
- Provide dully filled loan application forms
- Provide 2 current payslips or 6 months certified bank statements
- Provide required number of guarantors and/or collateral for loans secured with title deed or logbook
- Provide additional supporting documents where required, for example, fee structure, hospital bill.
- Provide a commitment letter stating the preferred mode of loan repayment and copies of standing order or direct debit form where applicable.
Guarantor requirements / LOAN SECURITY ACCEPTED
- Three guarantors- for loans above Ksh100,000
- One guarantor for loans of Ksh 100,000 and below, payable in 12 months or less.
- Self- guarantee allowed if loan amount is within a member’s deposits and member has not guaranteed others.
- A member can guarantee a maximum of 13 loans subject to 3.5 times deposits
- Motor vehicles of 8 years and below up to a maximum of 50% of the value.
- Land & buildings in urban areas up to a maximum of 70 % of the value.
- Only ACTIVE members can guarantee loans.
OTHER CONDITIONS
- Loan eligibility – To qualify for a loan, a member has to save for six (6) months with the exception of the Karibu M-cash loan which require 3 months active membership.
- Loan processing fee – 1.2% on amount applied for subject to a minimum of KSh 500 and a maximum of KSh 10,000 inclusive of taxes (excise duty). Payable in 12 months.
- Loan insurance – KSh 0.2 (cents) per 1,000 per month (loan period). The insurance covers loan against death or permanent disability. Payable in 12 months.
- All LOAN CHARGES – including processing fees and insurance, are deducted from the approved loan amount. The member receives the net amount in their account.