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 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.
- 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% 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 0.126 (cents) per 1,000 per month (loan period). The insurance covers loan against death or permanent disability. Payable in 12 months.