- NORMAL LOANS
- Normal loans lending rate to be retained at 3 times of the deposits held.
- First normal loan to members to be retained at 3.5 times member’s deposits.
NB: This does not include members rejoining or those joining from other Saccos.
- Repayment period for normal loans to remain 60 months.
- Maximum normal loan to remain Kshs. 6 million.
Maximum of total loans should not exceed 3 times member’s deposits at any time, including special loans.
- EMERGENCY LOANS
- All emergency loans will be granted subject to member's ability to pay and 3 times shares/deposits limit.
- Repayment period for emergency loans to remain12 months.
NOTE: Documentary evidence is not required on emergency loans.
- COLLEGE/UNIVERSITY AND SCHOOL FEES LOANS
(a) NURSERY TO SECONDARY SCHOOL
- Maximum amount to remain at Kshs. 200,000 per member per year.
- Repayment period nursery and secondary school fees loan to remain12 months.
- Members to qualify for additional loans provided total for the 12 months (from the date the loan is granted) does not exceed Kshs. 200,000.
(b) COLLEGE AND UNIVERSITY
- Maximum amount to remain Kshs. 500,000.00 per member per year.
- Repayment period to remain 12 months.
- NOTE: No documentary support required for Nursery/Secondary/College and university loans.
- SPECIAL LOAN
- Special loan will be based on 3 times total shares/deposits but will not have limitations on 1/3rd provision so long as one opens an account in FOSA through which repayments of the loan will be channelled.
- Maximum amount to remain Kshs. 400,000.00.
- Repayment period to remain 24 months.
- Interest charged to remain 3% on reducing balance basis.
- Total interest payable to however be calculated and paid in equal instalments over the loan’s repayment period.
- The special loan product will be transferred to FOSA w.e.f 1st July 2012.
(v) TOP- UP NORMAL LOANS
- Commission to continue to be charged to any member who requires a normal loan but is not able to clear the outstanding loan in cash.
- The commission to remain 10% of the total loans outstanding.
- The outstanding loan(s) and commission will be deducted from the total loan requested.
- The request must be done in writing.
(vi) NORMAL LOAN AFTER CASH PAYMENT
- Members who clear their outstanding normal loans by cash and apply for a new normal loan before the stipulated waiting period of 3 months will be required to pay a 5% commission on outstanding normal loan balance cleared in cash.
NB: Commission due on (v) and (vi) above may be paid in cash or deducted from the loan requested according to the member’s wish.
NOTE: INTEREST ON LOANS
Interest on all loans except Special loans will be charged monthly at 1% of the loan outstanding on a reducing balance basis.