Loan Application and Agreement- Terms and conditions.

Loan Application and Agreement- Terms and conditions.

Elite and Premier Loan are subject to four times the value of deposit (the main savings account) held. Aspire and Elimu Bora loan are subject to three times the value of deposit held in the main savings and Education Scheme Savings accounts respectively. Biashara, Express and Jibambe loans are 5 times value of main savings account less any outstanding loan on eligible based on the main scheme account. Other basic internal regulations governing the loan products will also apply.

No member will be permitted to suffer total deductions (including savings, loan repayment and interest in excess of two thirds of his/her basic salary.

Outstanding loans must have been cleared before a new loan is granted in a particular loan product. Cleared and apply T&C will apply in the contrary. Clear & apply across products and top up loans to attract bridging loan interest of 5 percent of the outstanding balance minimum being Kshs. 5,000.00 and a maximum of Kshs 100,000.00

Members must have been regular contributors for a period of not less than six months with a minimum main savings account deposit contribution of Kshs. 3,000.00 per month totaling Kshs. 18,000.00 plus Risk Management of kshs. 400.00 per month. Education Scheme Savings requires having minimum savings of Kshs. 1,000.00 per month. For Elite loan and Premier loan applicants, the minimum contribution is Kshs. 5,000.00 and Kshs. 4,000.00 respectively, this is subect to the prevailing tariff.

The guarantors must be members of the society and should not have acted as guarantors for more than five loans. Guarantors must ensure that the amount in words and figures applied for tally before they sign the form.Defaulters are not eligible to guarantee any loan. Guarantors’ exposure limit is kshs. 3Million or as specified in the prevailing tariff.

Bulk clearance of all loans is acceptable & one becomes eligible for a loan immediately.

Normal clearance of a loan makes one eligible for a loan immediately. Lump sum main scheme deposit contribution for the purpose of securing loan from the society can be considered only if such money remains in the society for at least three months. Bulk deposit to attract a surcharge fee of 10% with a maximum of kshs.500,000.00 meant for immediate borrowing and subject to approval before depositing.

Repayment mode will strictly be through check- off or direct debit unless approved otherwise by the Sacco as per the credit policy.

In case of any default in payments the entire balance of the loan will immediately become due and payable at the discretion of The Kenya Bankers. All deposits/savings owned by the member and held by the member plus any interest and deposits due to the member will be off set against the loan balance(s) owed. The member will also be liable for any costs incurred in the collection of the loan balance and accumulated interest. Any remaining balance will be deducted from the security provided by the member.

Default in past monthly savings / share contributions and loan repayment will cause rejection of this application or reduction of applied amount.

Default for more than 90days will automatically be listed to CRB and past default will qualify for a loan after expiry of maximum 6 months after clearance.

Incase of Loan Restructure due to default, a member will qualify for another loan only after 12 months. Incase of loan net - off against savings, one is eligible for a loan after 6 months of consistent contribution.

Loan processing fees, loan appraisal fees and interest rates will be as per the prevailing tariff available on the website https://www.kenyabankers.coop as approved by the board of directors from time to time.

All fees /commissions are recovered from loan proceeds before disbursement including taxes where applicable.

Loan for above the limits set in the tariff must be insured by way of Life policy.

Aspire, Elite, Premier loan application should reach the society offices on or before 10th of the month if it is required for disbursement on the 10th of the following month. For Biashara, Elimu Bora and Loan within savings, applications forms are processed on a weekly basis while Express, Jibambe, Afya Imara and Karibu loans will be processed within 24hours.

Approval is subject to terms and conditions of the credit policy.
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