- The loan is issued at a maximum of 60-85% of the member’s previous year’s interest on deposits (dividends as popularly known).
- Product is offered in the fourth quarter of a financial year
- A one-off interest of 10 % shall be charged upfront on the loan approved.
- A member must have been in the Sacco and contributed consistently for more than one year. New members from December of the previous year do not qualify.
- A member whose account is dormant, default (Including loan status i.e. watch, substandard, doubtful and loss), non-active, withdrawal or in process of withdrawing or has arrears in his/her loan payment and/or deposits will not qualify for this loan.
- Guarantors/Finnpesa Loanee whose deposits were offset during the year to reduce a defaulted loan shall not qualify.
This loan shall be offset against the year’s interest on deposits once declared, member can also opt to pay by her/herself and still be eligible for another amount