- This is a product used to restructure defaulted loans by a member applying for a new loan that replaces the outstanding balances of several older loans taken earlier, and is paid over a longer period, usually with a lower installment amount.
- Loans will be rescheduled to accommodate a borrower in a financial difficulty and, thus, helps to avoid and or reduce default, and discourages members from going for Bank loans to clear SACCO Loans.
- This facility is meant to assist members who would wish to renegotiate the terms and conditions of their loans and also those in need of additional cash, but are unable to access due to the numerous loans they are servicing. It applies to the following:
- Defaulting members who have expressed willingness to pay their loans, but at negotiated repayment amounts
- Members who have several small loans and cannot access additional facility and are in need, and if the loan is restructured, they will be able to meet their needs and increase their take home.
- Restructuring can only be allowed once within a 24-month period;
- A member who restructures his/her loan will be required to pay for the restructured loan for at least 6 months before applying for another loan in the SACCO;
- Interest rate shall be charged at a rate 1% on reducing balance;
- Repayment period is a maximum of 120 months;