Utafiti Sacco Loans

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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

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