Below is a list of loans offered by Meru University Sacco, membership requirements and contacts:

Meru University Sacco Membership Requirements

MEMBERSHIP ELIGIBILITY

Members shall consist of:

1. Original members who signed application for the organization of the society and

1. New members subsequently admitted in accordance with these by-laws and whose names are entered in the register of

• A person of either sex shall be eligible for membership who possesses all of the following qualifications:

1. Is not less than 18 yrs of age;
2. Is of good character and is of sound mind,
3. Is resident within the republic of Kenya
4. Is in employment within Meru University College and other affiliated institutions approved by the Society through the general
5. Is member of the immediate family of the primary

• Every applicant for membership shall complete an application for membership form. This may be drawn so as to show all the information required for a register of

• Applicant shall be admitted to membership on being accepted by majority of the managing committee in their meeting but shall not qualify for the rights and privileges of a co-operative members until he/she has paid entrance fee of Kshs 500 and paid in full of at least 50 shares of Ksh.20 each. The rights and privileges referred to here above are getting loans or other services offered by the society. The level of such benefit as loans and services are determined by the amount of deposit and the ability to pay based on the pay

• The managing committee may refuse membership to any person by giving him/her varied reasons in writing; provided that, the person whose membership has been refused, if otherwise eligible for membership, shall have the right to appeal to society’s general meeting. Any such appeal must be supported by at least ten society

Membership rights

Subject to these by-laws, policies, stardards, values and procedures, all members shall have the rights to use the society services and exercise the rights established by the acts, the rules and the by-laws. The members are entitled but not limited to:

1. Receive, periodically and regularly, or upon request, and at least once a year, a statement of accounts containing the individualized record of her/his credit and debit
2. Attend and participate at a general meeting. Each member shall have one vote irrespectively of the member total share
3. Elect or be elected as a member of the society unless otherwise prohibited by any other law or these by
4. Use the society services according to the policies and procedures approved by the management
5. Submit project or initiatives to the management committee, for improvement of the society
6. All other rights are prescribed by the Act and the

MEMBERS OBLIGATIONS

In compliance With the act, members of the society are obliged to:

• Attend meeting and take part in decision

• Show good co-operative

• Inform non- members and encourage them to join the

• Bring out problems affecting the society and look for

• Participate in society projects both financially and

• Attend education meetings and seminars organized by the society and other organizations approved by the management

• Make use of the services of the society as stated in the object of the society.

• Comply with these by-laws, the co-operative society act, the rules and the general meeting

SOCIETY OBLIGATIONS

1. a) Every member shall receive a membership card, which shall contain full particulars as to his/her membership. A membership card signed by fully authorized officer shall be conclusive evident that the person named therein is a member of the society unless it is proved otherwise
2. b) If the membership card is lost issuance of a duplicate may be authorized by the managing committee upon payment of such a fee as may be decided by management committee.

NOMINEES

Every member upon admission to membership shall nominate in writing one or more persons to whom, on his/her death, his/ her share deposit, or any other interest shall be transferred. Appointment of nominee by a member shall be in writing and signed by the member in presence of two attesting witnesses. A member shall have the right to change his/her nominee(s), but any such change or alteration must be in writing and signed by the members in presence of the two attesting witnesses. Any change of nominees shall supersede the earlier one(s).

1. a) On notification to the society on the death of the member by an offer of the administration/employer, the beneficiary/ the nominees shall be paid the full value of the deceased members deposit or interest less any sums due by the latter to the society where applicable, as soon as possible to the nominees and in accordance with the

However in case of dispute as to the beneficiaries/ nominees, the mater shall be referred to the public trustee.

b)Where any money is paid to a nominee who is a minor, a receipt given either by the minor or by his /her guardian shall be sufficient discharge of the

c)Payment to nominees shall be made within one year of the death of the

CESSATION OF MEMBERSHIP

1. Membership in the society shall cease with effect from the date of a member:
2. Dying
3. Being expelled from membership
4. Ceasing to hold the qualifications stated in by- laws
5. becoming incurably
6. On transfer on his/her
7. Becomes inactive in society business activities for 12 consecutive months without reasonable

• a) A member may at any time wish to withdraw from the society by giving a minimum written notice of 60 days provided that deposit shall not be withdrawn in part but in a whole. The society shall however levy a withdrawal charge of 10% of total deposit held by the withdrawing member or a maximum processing charge of kshs 500/=, whichever is

• The managing committee or the general meeting may expel a member who:

1. Fails or refuses to comply with the societies by laws, policies and contracts and persist in such refusal or
2. Is convicted in a court of law of a criminal offense in involving
3. Willfully default in payment of loans for a period exceeding six
4. Acts in any way prejudicial to the interest of the

• A member so expelled shall have the right to appeal to the next general meeting convened in accordance with these by-laws which may reinstate

PAYMENTS RESULTING FROM WITHDRAWAL, TERMINATION OR EXPULSION FROM MEMBERSHIP

A member who withdraws or is expelled shall be repaid the following amounts after deductions of any debts owned by him/her to the society as a borrower, endorser or guarantor or otherwise:-

The value of his/her deposit provided however that the managing committee may require a maximum of 60 days written notice of the intention to withdrawal deposits.

1. Any dividends or interest due to him/her up to the last accounting
2. Any other deposits or other sums held on the society on his/her

The funds of the society shall consist of:

1. Membership entrance fee of kshs of 500
2.  An unlimited number of shares to the value of 20 each.
3. Deposits or loans from members or non-members
4. Such reserve funds as required by the acts and rules, capital formation funds, and such other funds as may be kept by the
5. Any surplus resulting from operations of the society;
6. Any donations, grants and gifts from any other bodies, organizations and individuals.
7. Deposits protection
8. Funds obtained from other lawful miscellaneous

• The funds of the society shall only be applied to the promotion of the stated objects and purposes of the society as set forth in these by-laws and as determined and approved by the general meeting and by the commissioner.

 

SHARES AND DEPOSITS

• With the approval of the managing committee, a member may at any time transfer his/her shares/deposits to another member but not to any other person. Such transfer must be in writing and at nominal value provided that shares/deposits shall be transferred in whole and not in
• The members minimum deposit contribution per month shall be 500. However, the SACCOs general meeting has the mandate to vary the minimum monthly contribution
• The nominal value of each share shall be Kshs. 20 and each member shall hold at least 50 unwithdrawable shares in the society but no member shall hold more than one fifth of the total shares of the society. Non-member shall not hold share but shall hold deposits.
• a) All transfers of shares/deposits must be registered with the secretary, and no transfer shall be valid unless so registered. The committee may require payment of Kshs 1000 or as it may decide from time to time for each such

1. b) The society may not buy back any shares due to a member who want to transfer or resign the membership but may do so if it has shares transfer funds.

• a) The society shall keep separate accounts for member’s shares and

1. b) The liability of each member shall be limited to the nominal value of the number of shares held by him/her.

Meru University Sacco loans

Super Loan

Requirements

1. Pegged on four (4) or five (5) times of the borrower’s normal shares depending on the duration of capitalization of interest /dividends
   ii. This loan is repaid up to a maximum period of eighty-four (84) months with a share multiplier of either four (4) or five (5). Capitalization of dividend/interest is either four
   (4) or five (5) years depending on share multiplier respectively.
   iii. The society shall charge an interest of one point zero eight per cent (1.08%) per month on a reducing balance.
   iv. Ceiling on the amount for the loan is Kenya shilling four million (Kshs. 4,000,000).
   v. Loan application must be supported by the member’s latest two (2) pay slips.
   vi. The loan MUST be fully secured by at least three (3) guarantors.
   vii. Processing fee of one point five percent (1.5%) shall be charged on the loan applied.
   viii. Minimum monthly share contribution for amount above two million Kenya shillings (2 million shillings) is three thousand (3,000) and minimum shares of two hundred thousand Kenya shillings (Kshs. 200,000).
   ix. Capitalization of member’s dividends during the loan repayment will either be four (4) or five (5) years depending on the share multiplier.

Product Loan

12% per annum maximum 12 Months

Education Loan

School Fees Loans

This product is for the purpose of paying School fees ONLY.

Requirements:

1. The member MUST attach fees structure(s) on the application form.
   ii. School fees loans are repaid within a period of twelve (12) months.
   iii. Interest shall be charged on the loan at a rate of one percent (1%) per month on a reducing balance.
   iv. The upper limit is determined by the member’s ability to repay.
   v. Loan application must be supported by the member’s latest two (2) pay slips.
   vi. The loan must be fully secured by at least three (3) guarantors,
   vii. Processing fee of one percent (1%) shall be charged on the loan disbursed.

Development Loan

1. a) Normal/Development Loan

This product is given to enable members acquire/develop property.
Requirements:

1. Pegged on 3 or 4 times of the borrower’s normal shares, with the latter’s interest on deposits (dividends) being capitalized for 4years.
   ii. This loan is repaid up to a maximum period of seventy-two (72) months.
   iii. Interest shall be charged on the loan at a rate of one percent (1%) per month on a reducing balance
   iv. Ceiling on any amount loan advanced to a member is four million Kenya shillings (KSh. 4,000,000).
   v. Loan application must be supported by the member’s latest two (2) pay slips.
   vi. The loan must be fully secured by at least three (3) guarantors.
   vii. Processing fee of one percent (1%) shall be charged on the loan disbursed.

Emergency Loan

This product is given to cater for unforeseen happenings beyond a member’s control.

Requirements

1. The loans are repaid within a period of six (6) months.
   ii. Interest shall be charged at a rate of three percent (3%) per month on reducing balance.
   iii. No member shall have more than one Emergency loans at any one time
   iv. The loan MUST be fully secured by one (1) guarantor.
   v. Loan application must be supported by the member’s latest two (2) pay slips.

Welcome Ushirika Loan

This is a loan product given to a new member once the first contribution has been received.

Requirements

1. The maximum repayment period will be twenty-four (24) months.
   ii. Part of the loan amount will be transferred to the customer deposit to ensure the member deposits are a third (1/3) of the loan applied.
   iii. The loan shall attract interest rate of one percent (1%) per month on reducing balance.
   iv. Minimum of three (3) guarantors is required when the member is more than 6 months old in the Society.
   v. The deposit contribution of both the borrower and the guarantors shall be equal or more than the loan granted.

Share-Deposit Booster Facility

Requirements

1. The facility will boost your deposits to enable you get your desired loan.
   ii. To help the member get a bigger loan, the member’s deposits are increased by two hundred percent (200%) of the member’s current deposit at the time of loan application subject to a maximum of five hundred Kenya shillings (ksh. 500,000).
   iii. The boosting facility will be credited to the members’ account.
   iv. The amount will be eligible to earn interest at the end of the year.
   v. Interest charged on boosted amount is one-off at five percent (5%).
   vi. Repayment of the loan shall be as per the terms of the loan borrowed.
   vii. Interest shall be charged on the loan at a rate of one percent (1%) per month on a reducing balance.

Loan for Members on Contract Employment, Loan Re-scheduling and Re-financing

Members on contract employment are eligible to benefit from the entire Sacco products subject to the following conditions:

1. The guarantors must be of permanent and pensionable terms.
   ii. The loanee shall attach his or her appointment letter.

Loan Re-scheduling and Re-financing

1. To qualify for a top up, the member must have paid the normal and super loan for at least six (6) months.
   ii. A commission of five hundred Kenya shillings (Kshs. 500) shall be levied
   on the principal balance.
   iii. The top up amount requested is treated as a new loan.
   iv. The top up loan must be fully secured by guarantors.
   v. No re-financing of product and school fees loans is allowed.
   vi. No limits for refinancing of emergency loan.
   vii. Other terms and conditions of the original loan apply.
   viii. Interest shall be charged on the loan at a rate of one percent (1%) per month on a reducing balance

Meru University Sacco contacts

Email mustsacco@gmail.com and Phone Number 0717739612 Physical Location: SACCO Office location next to the main gate- Meru University of Science and Technology