7.1 Gurantorship.
Members are allowed to guarantee up to a maximum of 20 long term loan applications. Members with default history will not be allowed to guarantee new loans.

7.2 Other Acceptable collaterals.

• Deposits: Any form of deposits or non-withdrawable savings is acceptable such as Special Deposit Account (SDA)/Golden Savings.
• Land Titles: Land titles for urban areas including Jamii Housing Co-operative Society plot titles.
• Car log books: For vehicles not exceeding 10 years subject to valuation.

NOTE:

• Land Share Certificates are not acceptable.
• Cost of valuation and charge to be borne by the member.
• Car log books to be co-owned with the SACCO.
• Land Titles to be charged and member to meet the legal charges.

7.3 Jamii Benevolent Fund (JBF)
This is a self insurance scheme that covers all loans in the SACCO except Micro Finance which are insured separately. Every member must contribute a minimum of Kshs.200.00 per month so as to be fully covered. The purpose of JBF is:

• To settle outstanding loans which are current in the event of a member’s death or Total Permanent Disability (TPD).
• To pay final dues; double the deposits of the member to the named Next of Kin or Nominee.
• To pay last burial expense of Kshs.40, 000.00 in respect of the contributor or the named Next of Kin.
• The fund is re-insured with an underwriter.

NOTE: Members are advised to regularly update their Next of Kin records.

7.4 Withdrawal from the JBF Scheme.
The JBF fund may be refunded to the members who have not claimed from the scheme on exit as follows:

• 0-3 Months Membership – NIL
• 3 Months+ – 3 Years Membership – 25% of the contributions
• 3 Years+ – 7 Years Membership – 50% of the contributions
• 7 Years+ and Above Membership – 75% of the contributions

Note: 100% refund is neither feasible nor possible due to the expenditures incurred in this kitty.