Mwalimu Sacco BOSA Loans – Simplified Guide

Emergency Loans:

These loans essentially help members meet emergency financial needs such as hospitalization, bills that may fall due suddenly and unforeseen circumstances.

Product features:

  • Repayable in 24 months
  • Only one emergency loan can be granted at a time
  • Emergency loans are given within a member’s entitlement
  • Maximum limit is a members’ deposits x 5 (subject to 1/3 salary rule and ability to repay within twenty-four months)
  • Principle loan repayment is done separately from interest

School Fees Loan:

Mwalimu National offers members the school fees loan product to enable them to cater for their educational needs as well as their children’s school fees without straining.

Product features:

  • Repayable in 24 months
  • Only one school fees loan can be granted at a time
  • School fees loan is given within a member’s entitlement
  • Maximum limit is a members’ deposits x 5 (subject to 1/3 salary rule and ability to repay within twenty-four months)
  • Principle loan repayment is done separately from interest repayment

Normal Loan:

The normal loan is a short-term loan intended for investment purposes, also enables members to acquire assets.

Product features:

  • Repayable in 36 months
  • Only one normal loan can be granted at a time
  • Maximum limit is a members’ deposits x 3 (subject to 1/3 salary rule)
  • Principle loan repayment to be done separate from interest repayment

Development Loan:

This is a medium-term loan intended to empower members to undertake investment activities and address development needs.

Product features:

  • Repayable in 48 months
  • Only one development loan can be granted at a time
  • Maximum limit is a members’ deposits x 4 (subject to 1/3 salary rule)
  • Attracts 5% processing fee on approved amount
  • Recovery is done at a monthly flat rate combining principle repayment with

Super Loan:

Super loan is a long-term loan granted to members to enable them undertake development projects, property acquisition and other investment activities for long-term benefits.

Product features:

  • Repayable in 84 months
  • Only one super loan shall be granted at a time
  • Maximum limit is a members’ deposits x 4 (subject to 1/3 salary rule)
  • Attracts 5% processing fee on approved amount.
  • Recovery to be done at a monthly flat rate combining principle repayment with

Vision Loan 96:

This loan is specially tailored for members to finance long-term development projects and meet investment needs. The product’s longer repayment period and higher deposit multiplier makes it suitable for this purpose.

Product features:

  • Repayable in 96 months
  • Only one vision 96 loan can be granted at a time
  • Maximum limit is a members’ deposits x 5 (subject to 1/3 salary rule)
  • Recovery is done at a monthly flat rate combining principal repayment with
  • Processing fee of 1% paid upfront

Wezesha Loan:

A loan product for new members who have ability to pay a loan but have no sufficient deposits to qualify for one. A small portion of the applied loan amount is retained as a member’s deposits while we issue out to the member the remaining amount.

Product features:

  • Maximum amount loanable is determined by the member’s ability subject to 1/3 salary
  • Processing fee of 2% paid upfront
  • Repayment period is 72 months and the loan must be fully guaranteed
  • The product is only issued to new members and not readmitted
  • Recovery is done at a monthly flat rate combining principle repayment with

Ufanisi Loan:

This is long-term loan product aimed at enabling members with salary ability but have low deposits to access more credit by boosting their deposits. A portion of the loan applied is retained as deposits enhancing the members balance multiplier.

Product features:

  • Repayable in 72
  • 10 % deposits boosting fee
  • Minimum deposits prior to the application Ksh200,000.
  • Loan must be fully guaranteed
  • Only one Ufanisi loan can be granted at a
  • The member’s salary to be channeled through Mwalimu National Sacco
  • Recovery is done at a monthly flat rate combining principle repayment with

The Golden Product

This is a product that enables our members to continue living a dignified life during the period between retirement and when they receive their pension. The member can access up to a maximum of 50% of their BOSA deposits moved to the Golden Account and which is disbursed monthly for a maximum of 24 months.

Product features:

  • Eligible to only retired Retiring members are members who are leaving employment due to mandatory/voluntary retirement whose age is above 55 or retirement on medical grounds.
  • The account to run for a maximum 24
  • The 50% funds transferred to FOSA to earn 5% interest pa on monthly
  • Utilize maximum 50% of the BOSA
  • Open monthly standing order from the Golden account to FOSA savings
  • Member can access FOSA advance against this

Requirements:

  • Discharge letter (retirement letter); and
  • The member will be expected to provide the latest pay slip and provide proof that the pension will be channeled through Mwalimu FOSA

Benefits to Members:

  • Continue to enjoy a regular income
  • Access to welfare services
  • Access to credit facilities

Mwalimu National Welfare Services

These services come in to financially assist our members at that time when they are bereaved and have a huge financial burden.

They are both compulsory and include:

  1. Burial Benevolent Fund-BBF
    1. Used to accord members and their immediate families a decent burial
    2. Monthly contribution is 150
PERSON ENTITLEMENT IN KSH.
Self 60,000
Spouse 55,000
Own children 35,000. (up to a max of 6 children)
Own parents 20,000
Parents in-law 15,000

Supporting documents required during a claim:

  1. Certified copy of death certificate/permit for burial
  2. Birth notification form/ birth certificate (for all claims on own child)
  3. Radio announcement or newspaper caption or letter from Chief/ head of institution
  4. Any other supporting documents (specify)

Risk Fund

    1. Monthly contribution is 400
    2. Used to pay the outstanding loans of deceased members and double the monthly deposits to be paid to the nominee(s).

LAST EXPENSE BENEFIT (PAID IN ADDITION TO SACCO’S BBF BENEFITS)

PERSON ENTITLEMENT IN KSH.
Self 120,000
Spouse 80,000
Own children 40,000 (up to a max of 4 children)
Own parents N/A
Parents in-law N/A

For efficiency in payment the members should:

  • Confirm and update their nominees with the Sacco to avoid legal
  • In case of more than one nominee, clearly indicate the percentage allocation for each

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