Asset Finance is a facility available to all SACCO members who may desire to acquire, develop and own assets/properties. The product is available to meet purchase of various assets as follows:
A) Motorcycle, Water
Tank, Posho Mill, Solar Panel, Water Pump and Generator among others:
The terms and conditions are:
- Must be a member of the SACCO for a minimum of 3 months.
- Loan security is the Asset to be acquired.
- Loan term is a maximum of 12 months.
- Asset financed is 3.5 times of the Special savings (one must have special Savings)
- Loan amount of up to Kshs.300,000 for motorbike, tuk tuk, posh mill, solar panel, generator etc.
- Grace period is one month.
- Repayment frequency is daily, weekly, fort-nightly or monthly.
- Collateral discharge process requires member to apply for release of security from the SACCO upon clearing the loan.
- The Asset must be fully insured to the term of the loan.
B) Motor Vehicles
Terms and conditions are:
- Must be a member of the SACCO for a minimum of 3 months.
- Loan security is the Asset to be acquired.
Loan term is:
- Brand new Cars(1-7 years) – 48 months
- Used Cars up to 7 years -36 months
- Used Cars (8-10 years) -24 months.
- Loan term is maximum of 180 months for salaried members and 120 months for non-salaried members.
- The Sacco finances up to 60% of the forced value of the motor vehicle.
- Loan amount of Kshs 4,000,000 as maximum.
- Interest rate of 1.08% per month or 13 % per annum on reducing balance.
- The motor vehicle shall be jointly owned with the SACCO and comprehensively insured to term of the loan.
- Repayment and collection will be done either through check off, standing order, pay bill or cash.
- Grace period is one month.
- Repayment frequency is daily, weekly, fort-nightly or monthly.
- Collateral discharge process requires member to apply for release of security from the SACCO upon clearing the loan.
- Valuation, tracking system and legal charge to be borne by the member.
- Motor vehicle Insurance to be auto-renewed by the Sacco and members to pay the Sacco the insurance premium loan in 12 equal monthly installments at the rate of 1.08% per month or 13% per annum on reducing balance.
- Car track device to be installed by reputable service providers appointed by the Sacco and SLAs to be drawn and signed with clear terms and conditions.
- Log Books to be used as collateral to be regularly checked/ verified with NTSA and the insurers to confirm status by credit administration team.
- The Sacco will finance specific motor vehicles that have resale value.
- Matatus and tractors will not be financed by the Sacco except for the members who have accessed similar loans and with good repayment history.
C) Mortgage (Land and Property):
The terms and conditions are:
- Must be a member of the SACCO for a minimum of 3 months.
- Member to acquire it for buying commercial & residential land( within municipalities & urban areas).
- Loan term is maximum of 120 months.
- Asset financed 5 times of Special savings.
- Loan amount of up to a maximum of Kshs.10,000,000 for commercial land.
- Financing will be 100% of the purchase price plus the processing fees & other incidental costs.
- Land must have freehold title or a lease certificate with not less than 20 years before expiry.
- Maximum loan of Kshs.6,000,000 for agricultural land & limit the collateral value to forced sale value.
- Grace period is one month.
- Interest rate of 1.08 % per month or 13 % per annum on reducing balance.
- Processing fee is 2% of the cost of the Asset.
- Collateral discharge process requires member to apply for release of security from the SACCO upon clearing the loan.
- Valuation and legal charges to be borne by the member.
- Valuation and Charge to be conducted by SACCO appointed service providers.
