Loan Security and Lending Conditions
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 10 years and below.
- Land and buildings with frehold and leasehold title.
Zone
Property location
Loan limit (%)
A
Nairobi Metropolitan, Mombasa, Nakuru, Kisumu & Eldoret cities
90
B
County Municipal towns
70
C
Outside Municipal towns (Agricultural land)
50
- Only ACTIVE members can guarantee loans
LENDING 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 the amount applied subject to a minimumu of ksh. 600 and a maximum of ksh 12,000, inclusive of taxes (excise duty).
- Loan insurance – KSh 0.3 (cents) per 1,000 per month (loan period). The insurance covers loan against death or permanent disability.
