Dear Members,
REF: LOAN POLICY CHANGES
Pursuant to the Society’s Corporate strategy on Business growth, the Board of Directors in its meeting held on 27th August 2022 approved the following policy interventions on the BOSA loan policy:
Ufanisi Loan
a) Deposit Multiplier adjusted from four (4) times to five (5) times
b) Loan tenor adjusted from seventy-two (72) months to one hundred and twenty (120) months with other requirements remaining the same.
Normal Loan
Loan Tenor adjusted from thirty-six (36) to forty-eight (48) months Development Loan Tenor adjusted from forty-eight (48) to sixty (60) months.
Waiver of Commercial Bank Loans Buy-Off Commission.
The waiver of 5% commission charged on commercial Bank loan buy-off has been extended to 31st December 2022.
Suspension of Pro-rata Factor
Pro-rata Factor has been suspended up to 31st December 2022 for ONLY new loan applications with a minimum monthly deposit contribution pegged at Ksh. 2,000 in the interim basis.
These changes take effect from 1st September 2022, with an aim to push more credit to our members in view of squeeze on loan ability stemming from the current freeze of salaries review by the government.
You are, therefore, requested to encourage them patronize the loan products by leveraging these initiatives through restructuring, consolidating or new loans towards investments and development needs. Our focus is to offer opportunities for accessing credit to the general SACCO membership as we seek to re-engineer the Sacco brand.
Mwalimu National
Mwalimu Towers,
Upper Hill, Hill Lane, Off Mara Road
P.O. Box 62641 City Square,
Nairobi, Kenya
Tel: +254 (0) 020 295 6000
Cell: +254 (0) 709 898 000
Website: www.mwalimunational.coop