Loan Terms and Conditions

TERMS AND CONDITIONS FOR LOAN APPLICATION

1. All the information required must be completed for an application to be processed. The applicant must ensure the information provided is true to the best of his/her knowledge and belief.
2. All loans should be repaid within the specified period failure to which the society will take the appropriate measures in the recovery process at its disposal and all costs of recovery will be transferred to the member.
3. In the case of a BOSA Loan:
   • The first loan entitlements is 3 times of the deposits and a member must save consistently for three months to qualify for a loan. For subsequent loans, applicant can qualify for a fourth and fifth multiplier as per terms and conditions that apply.
   • The minimum savings to qualify for a loan shall be as determined by the Society. The amount shall not include the share capital.  Members with loans will be required to save a percentage amount based on the total loans outstanding.
   • All members of the group must guarantee the loan where the loan security is group guarantorship.
   • A member seeking to boost deposits by an amount in excess of 50% of existing member deposits will be subject to a waiting period of three (3) months before taking a loan in relation to the deposits at a fee.
4. All loans shall attract a loan processing fee as determined by the society and monthly insurance premium which will be determined by the prevailing insurance rate.
5. All loans are charged interest on a monthly or daily basis based on the interest rate determined for each loan product which may be revised from time to time. However, generally the interest rates on our products vary between 12% and 24% per annum.
6. The Board of Directors reserves the right to obtain any information from the applicant that it may deem necessary for purposes of loan processing.
7. The Borrower hereby consents and authorizes the Sacco to the collection of credit information/ personal data from Credit Reference Bureau and other financial institutions of which the borrower / or was an account holder to determine his or her eligibility for financial facilities.
8. The Sacco will not use any such collected data for negative profiling of the applicant or which may adversely affect the applicants rights and freedoms and legitimate interests unless the information and data so collected is within public knowledge and is required by a government agency legally authorized to seek such data and information or through an order of court.
9. The borrower hereby consents and authorizes the Sacco to the sharing with his guarantors, credit agencies, credit reference bureaus any data collected regarding his suitability for financial accommodation, loan or any other financial facility.
10. The borrower undertakes to comply with all legal and financial requirements relating to valuation of the collateral and securities perfection.
11. All loans applied through the Mobile Banking Application shall be deemed to be have been applied in full authority of the applicant and he/she accepts all the above terms and condition for loan application.