Utafiti Sacco offers different types of loans. The list of loans are as follows:
SHORT TERM LOANS
—-Haraka Loan
loan Overview
- The maximum loan limit is Ksh.250,000 payable within 9 months at 0.95% per month.
- The loan limit based on one’s ability to repay
- Secured by Individual savings /A minimum of 3 guarantors
- The loan can be paid to One’s Mpesa account
- One must be a member for at least 1 year with no default history
- Has the ability to repay
- This loan can only be used to refinance a similar loan
—-Special Loan
loan Overview
- This product is for meeting any special or non-specific member needs.
- Repayment period up to a maximum of 30 months.
- Interest rate is 1% per month on reducing balance.
- A member qualifies for only one Special loan at any given time.
- This loan can be refinanced.
—–Household loan
loan Overview
- This is a Type 2 loan.
- This product is for the purchase of household items.
- The multiplier effect is 3 times the member’s deposits.
- Repayment period up to a maximum of 18 months.
- The interest rate shall be 1% per month on a reducing balance.
- The maximum loan amount is Ksh.500,000
- A commission of KSh.500 is charged on every transfer done in favor of the vendor.
- A member qualifies for only one Household loan at any given time.
——Salary Advance
loan Overview
- This product is for members who need immediate short-term cash that is repayable within 30-days.
- Amount advanced is up to 50% of the members net monthly income, subject to the 2/3 rule.
- Repayment period is 30 days (1 month).
- Interest is 5% once.
- A member qualifies for only one salary advance at any given time.
- This loan cannot be refinanced.
——School Fees Loan
loan Overview
- The product is intended to finance schooling needs and expenses.
- Interest rate shall be 1% per month on reducing balance.
- Repayment period up to a maximum of 24 months.
- School fees cheques may be made payable to schools, if directed by the member.
- A member qualifies for only one School fees loan at any given time.
- This loan can be refinanced.
—–Emergency Loan
loan Overview
- Emergency loans are intended for any unforeseen circumstances.
- Interest rate shall be 1 % per month on reducing balance.
- Repayment period up to a maximum of 18 months.
- A member qualifies for only one emergency loan at any given time.
- The loan is disbursed within 24-hours.
- This loan can be refinanced.
—–Normal Loan
loan Overview
- This is a Type 2 loan
- This is intended for any project.
- The interest rate is 1% per month on a reducing balance.
- The repayment period is up to a maximum of 4 years (48 months).
- A member qualifies for only one normal loan at any given time.
- A member can qualify for other Type 2 loans while still servicing this loan.
LONG TERM LOANS
—–Premium Loan
loan Overview
- This is a Type 1 loan.
- This product is crafted to meet long-term financial goals
- One must have a minimum share capital of Kes.30,000
- Repayment period up to a maximum of 5 years (60 months).
- The interest rate shall be 1.083% per month on reducing balance.
- A member qualifies for only one Premium loan at any given time.
- This loan can refinance other Type 1 loans (except Dhamana) and/or other Type 2 loans, provided the amount applied satisfies the minimum threshold above.
——Super Saver Loan
loan Overview
- This is a Type 1 loan (long-term loan).
- One must have been a member of the Sacco for at least 3 years to qualify for this loan.
- The multiplier effect is 4 times the member’s deposits.
- The minimum amount that can be borrowed is KShs. 1,000,000.
- The minimum monthly contributions/savings shall be KShs. 10,000 after taking this product.
- The interest rate is 1.0833% per month on a reducing balance.
- The maximum repayment period is 6 years (72 months).
- One must have a minimum a share capital of KShs. 30,000
- One cannot have any other type 1 loan, but can have any other type 2 loan.
- This loan can only be refinanced to itself.
- One must have paid up to 20% of the existing Super Saver loan to qualify for refinancing.
- One can refinance all the other loans to a Super saver loan provided the member meets the above conditions.
- If a member takes a super saver loan based on four times multiplier, he/she will only be legible to apply for short-term loans having paid at 20% of the supersaver loan, and the total of remaining super saver and new loan shall not exceed 3x multiplier.
- If a member taking a super saver loan does not exhaust the 4x multiplier, they are legible for short-term loans at any time, provided the total of all loans does not exceed 3x multiplier.
- Any new loans taken after the super saver loan will be calculated based on the additional savings made after taking the super saver loan.
- A member with a super saver loan is however be eligible for promotional loan products by the SACCO as developed from time to time and salary advance loan.
—–Dhamana Loan
loan Overview
- This is a type 1 loan.
- Secured by a clean title deed for properties and land in urban and rural municipalities; with no encumbrances.
- This is a collateral based loan. It’s based on acceptable collaterals of Land at 90 % total forced sale Value and/or 75% total of Market Value (whichever has the higher value).
- The security for this loan is an acceptable collateral.
- The SACCO shall undertake valuation of the land on behalf of the member though the expenses shall be charged to the member and offset from the loan.
- The SACCO shall undertake the legal charge over the property using the SACCO lawyer. The expenses shall be charged to the member and offset from the loan.
- The multiplier effect is 4 times deposit.
- The repayment period is categorized as follows 72 months at 1.0833% interest rate on reducing balance. Ability to pay: Pay slip within the 1/3 rule or other proven and acceptable sources of income.
- One must have a minimum a share capital of KShs. 30,000
- The minimum monthly contributions/savings shall be KShs. 10,000 after taking this product.
- The processing time for this loan is about 3-months.
- The SACCO shall keep the applicant’s title for the duration of the loan.
- After full repayment, the applicant shall get back the title and undertake the discharge process on his own.
- This loan cannot be refinanced.
—–Development Loan
loan Overview
- This is a Type 1 loan
- This is the first loan when the member does not have any other loan. It’s granted on a clean payslip with no other loans.
- The interest rate shall be 1% per month on a reducing balance
- The repayment period is 5 years (60 months)
- One must have a minimum share capital of kes. 30,000
- A member qualifies for only one development loan at any given time
- This loan can only be refinanced to a Normal, Mavuno, Premium, or Super Saver loan
- A member can qualify for any other Type 2 loans while still servicing this loan
