Mwalimu National is the largest African Sacco with a membership drawn from teachers all over Kenya. Mwalimu National seeks to enable the TEACHERS access affordable financial services. The SACCO enjoys membership from all parts of the country.
NEW CHANGES IN MWALIMU SACCO BUSINESS LOANS
Here is the latest Communique from Mwalimu National SACCO management on new changes in their Business Loans;
‘This is to inform you that Mwalimu National Sacco Board Vide MIN/BOD/109/2019 effected the following changes on our Business loan products in line with improving financial services and financial solutions to our members. The new changes take effect from 1st December 2019; –
1. INDIVIDUAL LOAN:
- Repayment term extended from 36 to 60 Months.
- Minimum loan amount from Kes 500,000/= to Kes 150,000/=
- Maximum loan amount maintained at Kes 5,000,000/=
- Minimum saving of 20% of the loan amount Applied.
- Minimum monthly contribution to business loan savings will be Kes 1,000/-
- Loan to be secured by conventional collateral and disbursement subject to security perfection in all aspects and compliance with Approval terms.
- Member to open and maintain a Biashara FOSA account and channel their proceeds through the FOSA account
- Flexible Loan repayment terms synchronized with respective borrower cashflow cycles i.e. (Monthly, Termly, quarterly in advance).
- Businesses funded through this product shall be insured through Spire Insurance Brokers Ltd but the underwriter can be the choice of the member
- There will be 30 days grace period from the date of loan disbursement.
- Members to maintain at least one-month equivalent of loan installment in Biashara account at all times during the loan term.
- Members shall be issued with Loan offer letters and other relevant loan contract documents i.e. Loan schedules and letters of set-off.
- Applicant’s credit reference bureau reports will be used in application vetting
FOR COMPLETE DETAILS ON MWALIMU SACCO, VISIT THE LINK BELOW;
2. GROUP LOANS:
- Group must have had a banking relationship with the Sacco for at least six months
- Group minimum saving of 25% of the loan amount sought
- Minimum monthly contribution to business loan savings will be Kes 1,000/=.
- Group loans limited to groups pursuing common interest projects and have verifiable business plans
- Groups to open and maintain FOSA account with Mwalimu National account
- There will be 30 days grace period from the date of loan disbursement.
- Graduation from one tier to the next shall be pegged on loan repayment track record and banking relationship through our FOSA accounts.
- Members to maintain at least one-month equivalent of loan installment in Biashara account at all times during the loan term.
- Loan to be secured by conventional collateral and disbursement subject to security perfection and compliance with approval terms.
- Groups will be issued with loan offer letters and other relevant loan documents i.e. Loan schedules and letters of set-off.
- Applicant’s credit reference bureau reports will be used in application vetting.
3. SENIOR SAVER LOAN: –
- Senior saver must have attained Back office saving of Kes 1,500,000 and above.
- Loan limits extended from Kes 10,000,000/= to Maximum Kes 15 Million.
- Loan repayment term extended from 72 Months to 120 Months maximum
- Minimum monthly contribution to business loan savings will be Kes 2,000/-
- Loan eligibility subject to member demonstrated ability to service the loan amount sought this to be ascertained through business appraisal and supporting documentation i.e. books of accounts and bank statements.
- There will be 30 days grace period from the date of loan disbursement.
- Where member is undertaking capital projects, appraisal, financing and administration of loan proceeds shall be closely monitored and phased disbursement shall be adopted.
- Businesses funded through this product shall be insured through Spire Insurance Brokers Ltd, but the underwriter can be the choice of the member.
- For capital projects member must raise 20% of the project cost and Sacco financing be limited to 80% financing.
- Senior saver to open and patronize Biashara FOSA accounts and channel their business proceeds through the FOSA account
- Flexible Loan repayment terms synchronized with respective borrower cashflow cycles i.e. (Monthly, Termly, quarterly in advance)
- Members shall be issued with Loan offer letters and other relevant loan contract documents i.e. Loan schedules and letters of set-off.
- Applicant’s credit reference bureau reports will be used in application vetting,
4. MOTORCYCLE LOAN: –
- Members can source the motorbikes from dealers of their choice and brand of their choice and submit proforma invoice for the motorbike being financed 30% of the proforma invoice price shall be raised by the member and placed as a deposit with Mwalimu National Sacco.
- Minimum monthly contribution to business loan savings will be Kes 1,000/-
- Motorbikes shall be jointly registered between Mwalimu National Sacco & the member before payment is done to the dealer.
- The financed motorcycle shall always be comprehensively insured, and Mwalimu National Sacco interest noted as “financier/First loss payee Insurance shall be done through Spire Insurance Brokers Ltd.
- Members shall be issued with Loan offer letters and other relevant loan contract
- documents i.e. Loan schedules and letters of set-off.
- Applicant’s credit reference bureau reports will be used in application vetting.
RESTRUCTURE OF DEFAULTED LOANS
Mwalimu National Sacco Board Vide MIN/BOD/119/2019 approved restructuring guidelines for non Perfoming loans as per the guidelines stipulated hereunder; –
- The member must make a formal request to have the facility restructured and submit support documents.
- Member shall be appraised to ascertain viability of repayment plan and commitment to the loan obligation.
- Member must maintain POSA salary account and channel their employment and business incomes through Mwalimu National Sacco FOSA account.
- The Member to be issued with a loan offer letter detailing all their obligations in the Sacco and their corresponding securities as well as covenants governing the restructure of their facilities, the letter to be executed and attested to guide future relations.
- Member shall provide conventional collateral to secure outstanding loan exposure. Security perfection on the business loan facility to be undertaken/verified to ensure sufficiency and legitimacy of the collateral in place before disbursement of restructured amount.
- Where a member had sought legal redress, the Member to register a memorandum in court withdrawing the court case filed against the society as pertains realization of pledged collateral for the defaulted loan and notify the court of the proposed loan work out strategy.
- Member to offset all recovery costs associated with the court case i.e. Valuers fee, Advocates fee notes and auctioneers’ fees and any other incidental costs associated with restructure of this facility.
- Restructured loans shall not be entitled to bridging, top-up during the lifetime.
- The borrower should be willing to pay appraisal fee to be fixed from time to time and show proof before the restructuring can be commenced. For the time being the fee will be 2% of the outstanding facility to a maximum of Ksh.200,000 and a minimum of Ksh.10,000,
- Member to adhere to loan schedule repayment plan and subsequent default upon restructuring will result in commencement of recovery proceedings.