BOSA

BOSA LOAN PRODUCTS

1.Normal /Development Loan

• Given at 4 times of a member’s deposits and 4.5 for first time loanies.
• Interest rate of 1% per month on reducing balance.
• Maximum repayment period of 72 months.

2. Top-Up /Normal Development Loan .

• Available to members who are servicing the Normal Loan.
• Given at 4 times of a member’s deposits and 4.5 for first time loanies.
• Maximum repayment period of 72 months.
• Interest rate of 1% per month on reducing balance.

3. School Fees and College Fees Loans

• School Fees and College Fees Loans shall be advanced subject to member's ability to pay without any limits
• Given at 4 times of a member’s deposits and 4.5 for first time loanies.
• Interest rate of 1% per month on reducing balance.
• Maximum repayment period of 12 months.
• No documentary evidence is required

4. Super Loan

• Given at 5 times of a member’s deposits.
• Maximum repayment period of 96 months.
• Interest rate of 1.15% per month on reducing balance.

5.Emergency Loan

• Given at 4 times of a member’s deposits and 4.5 for first time loanies.
• Maximum repayment period of 12 months.
• Interest rate of 1% per month on reducing balance.
• No documentary evidence is required

6. Top-Up Emergency Loan

• Maximum repayment period of 12 months.
• Given at 4 times of a member’s deposits and 4.5 for first time loanies.
• Interest rate of 1% per month on reducing balance.
• No documentary evidence is required

NEW PRODUCTS

Daraja Loan

Advanced within deposits multiplier (*4) Repayment period - 36 months Interest rate - 1 % per month on reducing balance If member wishes to clear emergency loans, an interest on early redemption of 5% shall be charged.

Jibu Loan

For new members who are on check off but have not finished the mandatory 4 months waiting period.

• Member qualifies after first contribution is received
• Maximum loan is KES 200,000
• Interest rate – 1% per month on reducing balance
• Repayment period- 24 months or within contract term
• Hisa loan applies

Tech Loan

Loan product for acquisition of telecommunications products (mobile phones and tablets) from Safaricom by all members.

• Loan limit is 50% of deposits or Kshs. 150,000/= whichever is lower
• Interest rate- 0.8% on reducing balance
• Repayment period – 12 months

     Tech Loan Application Process:

1. Member visits a Safaricom shop/approved service provider and identifies the desired device.
2. The service provider issues member with a proforma invoice indicating the identified device and the respective retail price.

• Member fills the SACCO loan application form in the usual manner and attaches the proforma invoice.

1. Loan is appraised and processed in the usual manner.
2. Payment is made to the service provider.
3. Member is contacted by the service provider giving details on collection of the device. The member will be identified using the original National ID.

7. Requirements for Loan Application

• Members are required to be familiar with the Society’s current Loan Policy.
• Dully filled loan application form.
• Attach one original current pay-slip (not more than two months old to the date of application) A copy of National ID Card showing both sides. All loans must be secured by guarantors or collateral Private members to use own deposits for guarantor ship of up to 95%.

8. Chama Loan

• Advanced at 4 times Chama’s deposits
• Interest rate of 1% per month on reducing balance
• Maximum repayment period of 36 months.
• Maximum of Ksh. 30,000,000

9. Corporate Loan

• Advanced at 4 times Corporate’s deposits
• Interest rate of 1% per month on reducing balance
• Maximum repayment period of 36 months.
• Maximum of Ksh. 40,000,000

9. Dividend Advance

• Members may apply for advance dividends/ interest on deposits as may be approved by the Board of directors.
• Such payments will be made between 1st August  and January
• The amount payable will not exceed half of the dividends on shares/interest on deposits earned as at 30th June of the last financial year and will attract a 10% interest upfront.

10. Requirements for a Chama Loan

1. Consistent contributions for 4 months.
2. A fully filled application form signed by the officials.
3. Group minutes authorizing for loan application.
4. Purpose of the loan must be within the Group/Chamas constitution.

11. Mobi Loan

1. Open to members who process their salary through FOSA
2. Maximum loan Ksh. 45,000
3. Repayment period 3 months
4. Interest 10%
5. Recoverable from FOSA account

12. Flash Advance

1. Open to all members
2. Maximum loan Ksh 40,000. Beginning with Ksh. 10,000 graduated after each repayment
3. Repayment period 4 months
4. Interest 10%
5. Member to repay the loan through Paybill 850436