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Mwalimu National Sacco members to now get reduced loans

Mwalimu National Sacco has reviewed the loans’ lending rates for members. In the latest move, members’ loan borrowing ability will be limited.

Members of the Sacco have been enjoying increased borrowing ability following the Pay As You Earn, PAYE, tax relief of 5% at the onset of the Covid pandemic. The waiver was granted by President Uhuru Kenyatta to cushion citizens against the adverse effects of COVID- 19 and is to cease by 31st December 2020.

“We do, therefore, notify all our esteemed members on revision of our lending terms that the tax relief will not be used as part of borrowing ability for all our credit facilities effective 12th October, 2020. This policy change ensures that, members borrow within the two-third of the salary allowable deduction as required by the law and our organization’s By-laws.” Says Mwalimu National Sacco Chief Executive Officer, Alphonse Kaio via a circular dated October 9, 2020.

Kaio says the latest move will ‘also forestall the likelihood of Non-Performing loans that could pose a challenge to our financial performance.’

“The change on lending terms will be applicable on all loans and advance forms, received by the Society with effect from 12th October 2020.” He adds.

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Mwalimu National BOSA loans repayment schedule and interest calculator

Are you a member of Mwalimu National Sacco and you need a loan. Well. You need to know that the Back Office Services Activities (BOSA) is a department in Mwalimu National which offers various loan products against members’ deposits.

The Products offered under BOSA include:

(i) Emergency Loans at Mwalimu National:

 These loans are granted for unforeseen circumstances.
 They are repayable in 24 months.
 Emergency loans are granted within a member’s entitlement.
 Maximum limit is a members’ deposits x 5 (subject to 1/3 salary rule and ability to repay within twelve months)

(ii) School Fees Loanat Mwalimu National:

 Granted for educational purposes.
 Repayable in 24 months
 Maximum limit is a members’ deposits x 5 (subject to 1/3 salary rule and ability to repay within twelve months)

(iii) Normal Loan at Mwalimu National:

 Granted for investment purposes
 Repayable in 36 months
 Maximum limit is a members’ deposits x 3 (subject to 1/3 salary rule and ability to repay within 36 months)

(iv) Development Loan at Mwalimu National:

 Granted for development purposes
 Repayable in 48 months
 Maximum limit is a members’ deposits x 4 (subject to 1/3 salary rule and ability to repay within 48 months)

(v) Super Loan at Mwalimu National:

 Granted for investment purposes
 Repayable in 60 months
 Maximum limit is a members’ deposits x 4 (subject to 1/3 salary rule and ability to repay within 60 months)

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(vi) Vision Loan at Mwalimu National:

 Granted for investment purposes
 Repayable in 84 months
 Maximum limit is a members’ deposits x 5 (subject to 1/3 salary rule and ability to repay within 84 months)

(vii) Wezesha Loan at Mwalimu National

This is a loan product for new members who have the ability to repay but have insufficient deposits to qualify.

One third of the loan amount applied is retained as part of the member’s savings and the remaining amount is given to the member under the following terms:

 Maximum amount loanable is KShs. 600,000.00
 Processing fee of 2% paid upfront
 Repayment period is 36 months and the loan has to be fully guaranteed
 Wezesha Loan is only issued to new members and not readmitted members.

Mwalimu National BOSA loans calculations.
Mwalimu National BOSA loans calculations.

MWALIMU SACCO PRORATA

This is a percentage of savings pegged on the amount of loan a member borrows. Prorata encourages a savings culture.

It is important to note that your next loan will be bigger than this current one because, prorata will enable you increase your savings and you will also enjoy a very good dividend percentage at the close of the financial year.