BOSA

BOSA LOAN PRODUCTS

1.Normal /Development Loan

• Given at 5 times of a member’s deposits.
• Interest rate of 1% per month on reducing balance.
• Maximum repayment period of 84 months.

2. Top-Up /Normal Development Loan .

• Available to members who are servicing the Normal Loan.
• No waiting period.
• Given at 5 times of a member’s deposits 
• Maximum repayment period of 84 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 5 times of a member’s deposits.
• 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 6 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 5 times of a member’s deposits.
• Interest rate of 1% per month on reducing balance.
• No documentary evidence is required

6. Top-Up Emergency Loan

• Maximum repayment period of 18 months.
• Given at 5 times of a member’s deposits.
• Interest rate of 1% per month on reducing balance.
• No documentary evidence is required.

7. Daraja Loan

Advanced within deposits multiplier (*5) Repayment period - 48 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.

8. 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
• Given at 5 times of a member’s deposits.
• Maximum loan is KES 300,000
• Interest rate – 1% per month on reducing balance
• Repayment period- 24 months or within contract term
• Hisa loan applies

9. Tech Loan

Loan product for acquisition of telecommunications products (Laptops, mobile phones and tablets) from any dealer. 

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

        a). Tech Loan Application Process:

1. Member visits a dealer and identifies the desired device (Laptops, mobile phones and tablets).
2. The dealer issues member with a proforma invoice indicating the identified device and the respective retail price.
3. Member fills the SACCO loan application form in the usual manner and attaches the proforma invoice.
4. Loan is appraised and processed in the usual manner.
5. Payment is made to the dealer.
6. Member is contacted by the dealer giving details on collection of the device. The member will be identified using the original National ID.

         b). 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%.

10. Chama / Corporate Loan

• Advanced at 5 times Chama’s deposits
• Interest rate of 1% per month on reducing balance
• Maximum repayment period of 48 months.
• Maximum of Ksh. 30,000,000 for Chamas and 60,000,000 for Corporates

            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. 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.

12. 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

13. Flash Advance

1. Open to all members
2. Maximum loan Ksh 50,000. Beginning with Ksh. 10,000 graduated after each repayment
3. Repayment period and interest rates is as follows:

• 4 months @ 10 % interest
• 3 months @8 % Interest
• 2 Months @ 6 % Interest
• 1 Month @ 5 % Interest
• Member to repay the loan through Paybill 850436