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How to apply for Mwalimu National SACCO 2019 advance rebate, dividends.

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Mwalimu National SACCO will be issuing advance dividends for 2019 financial year to members. Here is the communique to all branch chairpersons concerning the advance dividends;

SUBJECT: ADVANCE AGAINST REBATE/DIVIDENDS FOR FINANCIAL YEAR 2019:

This is to inform you that the Society will be rolling out the above products for members interested to access it with effect from 1st November 2019.
The amount of advance qualified will be based on deposit balance as at 30th September 2019. The computation will be on month on month balances and a multiplying factor of 9% will apply. It is important to note that 9% is not the rate of dividends for year 2019 as the dividends rate will be determined after the end of our financial which is the calendar year.

The following terms will be applicable for those wishing to access the product:
1. A member will be required to fill the appropriate application form which are at our FOSA branches or downloaded from our website
2. Between 1st November 2019 to 31 December 2019, the advance interest will be 7.5%.
3. Maximum advance will be up to 50% of the amount computed with balances as 30th September, 2019.
4. From 1st January 2020 up to the date of the ADM 2020, interested members will be able to access advance equivalent to 75% deposits balance as at 31st December 2019. The maximum advance will be computed month on month basis and based on the deposit balance as at 31st December 2019 and subjected to multiplying factor of 9%. Note again the 9% is not the dividends rate year 2019
5. Members who are defaulters or having loans with recovery arrears will not qualify for this product.

The recovery of the advance (interest and principal) will be done immediately dividends and rebate for 2019 are approved by the Annual Delegates Meeting and credited to the members accounts.

Here are links to the most important news portals:

MWALIMU NATIONAL SACCO LOANS.

Why SACCO Loans are better

SACCO loans DO NOT have hidden charges but Bank loans have A LOT OF HIDDEN CHARGES besides monthly charges. Some of these charges include:

  • Insurance fee.
  • Appraisal/ Processing Fee
  • Account Maintenance Commission
  • Accrued Interest Charges (Arrears Account)
  • Late Remittance charges
  • Premature Loan Clearance charges.

NOTE: Banks have yearly reappraisals to determine interests to charge. This implies that the interest rates will vary within the lifespan of the loan. As and when interests in the money market change (upwards), the interests on running loans are also adjusted (upwards) without giving notice to the loanee.

A). BOSA LOAN PRODUCTS

Back Office Services Activities (BOSA) is a department in Mwalimu National which offers various loan products against members’ deposits.

Wezesha Loan

Unlike ALL other products, WEZESHA (to enable) is the ONLY product that a member does not have to wait for six (6) months before applying for a loan. Mwalimu National enables YOU (new member) to access funds of up to Kshs 600,000 immediately your first  savings deduction goes through. ONLY 1/3 of Kshs 600,000 will be retained in the new members account as savings.

Terms and conditions of wezesha loan

  1. This product is for new members only.
  2. Rate is 13% p.a on reducing balance.
  3. Wezesha loan runs for a maximum of 36 months
  4. 2% wezesha processing fee shall be charged on the amount to be advanced.
  5. Maximum loan amount to be issued shall not exceed Ksh.600, 000.
  6. The loan should be fully guaranteed.
  7. The minimum period for a member to qualify shall apply as per the sacco by-laws.
  8. Shares boosted shall earn dividends on pro-rata basis.

Emergency Loan

  1. Granted for unforeseen circumstances.
  2. Applicable interest rate is 1%p.m on reducing balance.
  3. Repayable in 12months.
  4. Multipler is x5 (subject to 1/3 salary rule).
  5. Only one emergency loan can be granted at a time.

School Fees Loan

  1. Granted for education purposes only.
  2. 1% p.m interest rate on reducing balance.
  3. Repayable in 12months.
  4. Maximum limit is a member’s deposit x5 (subject to 1/3 salary rule).
  5. Only one school fees loan to be granted at a time.

Normal Loan

  1. Granted as a short term loan aimed at helping members meet their immediet finacial needs.
  2. 1% p.m on reducing balance.
  3. Repayable in 36months.
  4. Limit is a member’s deposit x3 (subject to 1/3 salary rule).
  5. One normal loan to be granted at a time.

Development Loan

  1. Granted as medium-term loan for investment purposes.
  2. Applicable interest rate is 1.17% p.m on reducing balance.
  3. Repayable in 48months.
  4. Maximum limit is a member’s deposit x4 (subject to 1/3 salary rule)
  5. One development loan granted at a time.

Super Loan

  1. Granted as long-term loan for investment purposes.
  2. Interest rate is at 1.20% p.m.
  3. Repayable in 60months.
  4. Maximum limit is a member’s deposit x4 (subject to 1/3 salary rule)
  5. Only one super loan granted at a time.

Vision 84

  1. Long term loan for investment purposes.
  2. Interest rate is 1.29 p.m on reducing balance.
  3. Repayment period in 84months.
  4. The limit is a member’s deposit x5 (subject to 1/3 salary rule)

B). FOSA PRODUCTS

Front Office Services Activities (FOSA) is the banking arm of Mwalimu National that provides basic and affordable banking services to meet members’ needs.

Salary in Advance

  • The Interest Rate is 5%.
  • Maximum amount borrowed is 80% of your net salary or S.A.Y.E
  • Repayable @ the end of the month

FOSA Instant Credit(24 Months)

  • FOSA instant credit (24 months)
  • Interest rate @ 1.5% per month on reducing balance
  • Repayment period is 24 months.
  • Maximum amount granted is your savings under S.A.Y.E x16

FOSA Instant Credit(12 Months)

  • Interest rate is 1.25% Per month.
  • Repayment period is 12months.
  • Maximum amount granted is your net salary x16.
  • Maximum amount granted is your savings under S.A.Y.E x10.

M-Loan

Interest rate is dependent on the repayment period in that;

  • 1 month   @ 5%
  • 2 months @ 6 %
  • 3 months @ 7%
  • Maximum amount a member can borrow is up to 80% of his/her net salary or S.A.Y.E
  • Principal and interest amounts are recoverable at the end of each month.

Advance Dividends

This is a percentage of expected dividends that are normally paid earlier.

  • The interest rate is between 7.5% and 5% depending on the time a member requests for the advance dividends.
  • The maximum amount requested is 75% of your expected dividends.

Important Mwalimu SACCO links:

C). BUSINESS LOANS.

Individual loan

Clients with well established businesses, can access business loans directly without group requirements. The minimum loan for individual client is Kshs 501,000 and a maximum of Kshs 5,000,000.

Terms

  • Individual loans are offered at an interest rate of 1.25% p.m. on reducing balance.
  • Our repayment period is between 3-36 months depending on the amount borrowed.
  • The loan is self-secured and acceptable securities include logbooks and commercial title deeds.

Group Loans

Business Loans are disbursed to individual members within a group for expansion of existing income generating ventures. Such businesses must have been in operation for at least 6 months.

Group loans are done based on tiers.

  1. Tier one KSH 30,000 – KSH 150,000 (1.33% pm) payable in maximum 12months.
  2. Tier two KSH 151,000 – KSH 250,000 (1.33% pm) payable in maximum 24months.
  3. Tier three KSH 251,000 – KSH 500,000 (1.33% pm) payable in maximum 36months.

One has to start from tier one and graduate through the tiers within the program based on business ability. If successful, at tier three one can move to borrow as an individual client without the need of group.

Also read:

TSC News Portal

Equiloan for TSC Teachers from Equity Bank; Application procedure, requirements and repayment schedule

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Are you a teacher employed by the Teachers Service Commission, TSC? Do you need a check-off loan facility with Equity Bank and you are wondering how to easily get it? Well. Here is a guide on how to apply for the loan, requirements and the loan repayment schedule.

EQUILOAN FOR TSC TEACHERS

Equity bank gives a loan product to teachers employed by the TSC. This loan is referred to as Equiloan and is a medium term loan that is granted to salaried customers for investing in various personal development projects.

FEATURES OF THE EQUILOAN FOR TEACHERS FROM EQUITY BANK.

If you are intending to apply for the loan, then you should know that;

  • You can be given up to Sh2Million; depending on ability to pay.
  • The loan has a flexible repayment period of up to six (6) years.
  • The loan is unsecured. Meaning, with your payslip Equity bank will process your loan.

REQUIREMENTS OF THE EQUILOAN FOR TEACHERS

You should keep in mind that this loan has the list number of requirements. These include:

  • Loan application and appraisal forms which you can get at your local Equity Bank Branch.
  • Three original and most recent payslips. These you can print from the TSC Payslips Portal.
  • Two authorization forms which you can also get at your local branch.
  • Two clear copies of your national identity card, ID.
  • Two clear copies of your KRA PIN Certificate.

EQUILOAN APPLICATION PROCEDURE

To apply for the Equiloan follow the procedure below;

  • Visiting your local Equity Bank Branch and pick the authorization, loan application and appraisal forms. Fill the forms correctly.
  • Have the forms duly certified by your principal/ head teacher and TSC.
  • Attach the required documents and return the form to your Equity Bank Branch.
  • You will be informed of the application status after 48 hours (2 days).
  • The next step will involve approval of the loan online.

See also; KCB Personal Check Off Loan; Loan amounts, Interest rates and Schedule of loan repayment per month

HOW TO APPROVE YOUR LOAN ON THE TSC PAYSLIP ONLINE PORTAL.

  • Log into the TSC Pay-slip portal so as to send your payslip online to your bank/ Sacco.. This can be done by logging into the T-pay portal at https://payslip.tsc.go.ke/login.php
    • Enter your TSC number and password correctly and click ”Login’
    TSC payslip log in window.
    TSC payslip log in window.
    • Once logged in, under third party transactions, select ‘click here to send your payslip’.
    How to send your payslip to your bank/ Sacco.
    How to send your payslip to your bank/ Sacco.
    • In the next window, select the third party category as ‘Bank/ Sacco’ and Company to be ‘Bank/Sacco’. You now should click ‘send payslips’. You will get a success message on your screen thus; ‘Payslip for this month has already been sent to a 3rd party’.

    • Your Pay-slip will be immediately received at the Sacco/ Bank and the loan application is then processed.
    • Once the loan appraisal is complete, you will receive an sms alerting you to login into the TSC pay-slip portal to give your loan consent.
    • Log into the TSC Pay-slip portal and click ‘confirm loan’.In the next window, tick the box next to the current loan and click on ‘approve loan’.
    TSC payslip log in window.
    TSC payslip log in window.

    • Now select ‘back’ and you will be able to see the loan status as ‘confirmed’.

    • Once consent is given by TSC (by seeing the status indicated ‘confirmed’), you will need to alert your bank/ Sacco in order for the loan to be finalized and funds deposited into your account.

    • When your loan has been approved, the loan amount will be deposited into you account number and you will be notified.

EQUILOAN REPAYMENT SCHEDULE FOR TSC TEACHERS

It is important that you know how much loan you will qualify for. This you can check on the Equiloan repayment sheet (see below). Remember your payslip must have ability to support the monthly installments towards the loan and that a third of your basic salary must remain after all deductions.

Equiloan repayment schedule.
Equiloan repayment schedule.