ALL FOSA PRODUCTS

  1. SALARY LOAN

Short term loan granted to employee whose salary is processed in centenary FOSAaccount .

 

LOAN FEATURES

  • Maximum loan granted is 2/3 of net pay in the FOSA account times 9 subject to 2/3 rule of total deduction

  • Maximum repayment period is 12 month

  • Loan interest rate at 14% deducted upfront

  • Affidavit fee of 200

  • Crb referencing kshs 200

  • Loan guaranteed by employees who are member of the Sacco and salary processed through the Sacco


 

  1. SALARY ADVANCE

Short term loan granted to employee whose salary is processed in centenary FOSA account.

 

LOAN FEATURES

  • Maximum loan granted is 2/3 of net pay in the FOSA account times 5subject to 2/3 rule of total deduction.

  • Maximum repayment period is 6 months.

  • Affidavit fee of 200.

  • Cr b referencing of kshs 200.

  • Loan guaranteed by employees who are members of the Sacco and their salary processed through the Sacco.


 

  1. SALARY OVERDRAFT

Short term loan granted to employee whose salary is processed in centenary FOSA account.

 

LOAN FEATURES

  • Maximum overdraft granted is half the net pay in the FOSA account.

  • Loan is advanced after 15th day of every month and is fully recovered upon receipt of that month pay.

  • Interest rate of 5% payable upfront with a minimum charge kshs 200.

  • Loan penalty of 20% per month shall be charged in case of default.


 

  1. CLASSIC LOAN

Long term salary loan advanced to permanent and pensionable employees whose salary has been processed through the FOSA account in centenary Sacco for minimum 3 months.

 

LOAN FEATURES

  • Maximum loan granted is kshs1,000,000

  • Maximum repayment period is 60 months

  • Loan interest rate of 1.5 per month on a reducing balance

  • Loan appraisal fee of 1%

  • Loan form fee of 200

  • Affidavit of 200

  • Crb referencing of kshs 200

  • Loan security is guarantors, employment benefits and other accepted member assets.

  • 2/3 rule must be maintained.


 

  1. UWEZO LOAN

 Long term salary loan advanced to permanent employees of the Sacco who have worked with the Sacco for minimum two years.

LOAN FEATURES

  • Maximum loan granted will be limited by 2/3 rule.

  • Interest rate of 10% per year on a reducing balance.

  • Loan guaranteed by salary, employment benefits, deposit ,guarantors and accepted personal assets.

  • Maximum repayment period is 60 months.

  • Crb referencing of kshs 200.

  • Affidavit of kshs 200.


 

    1. LOAN APPLICATION FOR SALARY LOAN PRODUCT

All salary loan application to be done on official loan form which should be endorsed and stamped by the employer, two current original pay slips with official stamp to be attached on the loan form.


 

  1. JIFUNZE JUNIOR LOAN

FOSA short term loan granted to Sacco members with active jifunze junior account to enable them finance education of their children.

 

LOAN FEATURES

  • 80% school fees to be financed to Maximum amount 100,000

  • Maximum payment period 12 months

  • The loan must be supported by documents

  • Interest rate of 12% flat rate spread over the period.

  • Loan facilitation fee 1%

  • Secured by guarantors,

  • Affidavit 200

  • Jifunze account to be active for at least four month.

  • Min mum account deposit ksh20

  • Minimumaccount balance 200

  • Maxi mum no of withdraw 3

  • Loan advanced should be strictly to the junior welfare

  • Benefit – free bankers cheque.


 

  1. INSTITUTION LOANS

Short term loan available to all the catholic church-run institutions within the diocese of meru who have register as members of centenary Sacco .

 

LOAN FEATURES

  • Maximum loan kshs500,000

  • Repayable in three equal installment on or before 28th feb,15th may and 15th September but may be varied by the decision of policy makers.

  • Interest rate of 12% shall be be paid on equal monthly installment spread over the repayment period

  • Loan application and appraisal fee of kshs 5000 should be paid on application

  • Loan form shall be signed by the institution coordinator and endorsed by the diocesan administrator or the bishop

  • The loan disbursement shall be in chequeform,EFT to the school account or via a direct deposit to their Sacco account

  • As security ,the institution shall be required to open an account with the Sacco which shall be actively operated

  • A personal commitment letter shall be provided by either the institution’s head or head finance

  • Incase of default which in this case shall be after the expiry of the due date the defaulted amount shall attract a penalty of 10% or Kshs 5000 whichever is higher which shall be accrued on monthly basis until the loan is fully repaid.


 

  1. AGRICUTURAL LOANS

  1. KAMUA  LOAN.

A short term Loan granted to dairy farmers whose milk proceed is channeled through the Sacco for a minimum 3 months.

 

LOAN FEATURES

  • Maximum loan amount granted is 9 times average of 3 month milk proceeds.

  • Maximum payment period is 12 months.

  • Interest rate of 12% flat rate spread over repayment period

  • Appraisal fee of 1%

  • Facilitation fee 2%

  • Loan secured by guarantors whose milk proceeds are processed through centenary Sacco.


 

  1. VUNA MAJANI OVERDRAFT

Crop advance loan available to tea farmers whose tea proceeds are channeled through centenary Sacco.

LOAN FEATURES

  • Tea produce to be channeled through the Sacco for at least one month

  • The maximum overdraft amount issued will be calculated at the rate of ½ monthly payment rate and only harvested kilos ( as per factory generated receipts) that are pending payment would be used to calculate the advanced amount

  • Interest rate will be 5% deducted upfront or 200/= whichever is higher

  • Applicants MUST provide national id copy plus previous month’s original pay slip

  • No guarantors will be required for this product.

  • The overdraft will be recovered in full upon receipt of the previous month proceeds.


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  1. VUNA MAJANI LOAN

LOAN FEATURES

  • One must be an active member of the Sacco with monthly deposits for at least 3 months and channel his/her tea produce through the Sacco for at least 3 months.

  • The maximum loan shall be calculated based on previous year’s production in terms of Kgs multiplied by 15 ( the formula is subject to change depending on the prevailing market rates)

  • Maximum repayment period shall be 12 months done on monthly basis

  • Monthly repayment shall be 10% of monthly proceed and the balance to be recovered in full from the bonus payment

  • Interest rate shall be 13% flat rate

  • Loan facilitation of 2% and appraisal fee of 1% deducted up front

  • The member shall be required to contribute 10% of monthly proceed as deposit with kshs 300 being the minimum

  • Guarantors to this loan must be active Sacco members whose tea payouts are also channeled through the Sacco ( a minimum of 3 guarantors with matching produce ).

  • Applicants must fill an affidavit fee at a cost of Ksh. 200.


 

  1. BONUS ADVANCE/COFFEE ADVANCE

Short term loan product to tea and coffee farmers whose proceeds are channeled through the centenary sacco.

LOAN FEATURES

 

  • The criteria for calculating this will be ½ of the net expected bonus for tea farmer and kshs 10 per kg or 2/3 of anticipated rate for coffee farmers.

  • Interest rate of 8%. Deducted Up front

  • The principal balance is recovered within 3 months in one bullet payment.


 ALL BOSA PRODUCTS

Normal Loan

The loan shall be granted to members who are borrowing more than 300,000 and the loan is approved by credit committee. The loan form should be received one week before credit committee sitting.

 

LOAN FEATURES

 

  • Minimum loan amount is kshs 300,001 and Max mum loan advanced 3.5 times member deposit

  • Interest rate is 1% per month on reducing balance

  • appraisal fee of 0.5% of approved amount

  • Maximum loan repayment period is 48 months

  • Loan is secured by guarantors deposit and other acceptable collateral as may be defined by board of directors. The total loan advanced is fully secured by guarantors deposit

  • Other requirement include a credit report from CRB

  • Affidavit fee Kshs 200

  • Loan form that will come late and the member request to be forward in that month credit committee sitting will attract a levy of 1% on approved amount.

 

 


  1. NORMAL LOAN 2 (ASSET FINANCING)

Loan advanced to active Sacco members who intend to acquire assets like piece of land, motor vehicle, farm machinery or to develop already acquired asset.

 

LOAN FEATURES

 

  • Minimum loan amount is kshs 200,000 and Max mum loan advanced is Kshs 2.5 million subject to five (5) times member deposit.

  • Interest rate 1.5% pm on reducing balance.

  • Loan facilitation fee 0.5% of approved amount

  • Affidavit 200

  • Credit reference report

  • Max mum repayment period 60 month

  • Loan is secured by title deed ,motor vehicle or any other asset recommended by board of directors, members can also add guarantors if the asset used as security cannot fully cover the loan advanced

  • Cost of valuation and perfection of the security held to be catered by the borrower

 

 


Instant Loan

The loan is advanced to Sacco member who are borrowing amount kshs 300,000 or less and is processed instantly

 

LOAN FEATURES

 

  • Maximum loan advanced is 300,000 subject to 3.5 times member deposit.

  • Interest rate is 1% per month on reducing balance

  • Loan attract appraisal fee of 1%

  • Loan facilitation fee 1%

  • affidavit of kshs200 and CRB referencing of kshs 200

  • Maximum repayment period is 48 months

  • Loan should be fully secured by guarantors deposit and other securities as may be defined by board of directors

 


Re-Financing Loan

Loan advanced to active Sacco members who have other Bosa loan and are servicing them accordingly and their deposit can allow another loan to re-finance their current projects

 

LOAN FEATURES

  • Maximum loan advanced is determined by 3.5 time’s total deposit freed

  • Maximum repayment period is determined by number of BOSA loans one’s has with a maximum of:-

  1. First maximum of 48 months

  2. Second maximum of 36 months

  3. Third loan maximum 24 months

  4. Fourth loan maximum 12 months

 

  • Loan interest rate 1% pm on a reducing balance

  • Loan appraisal fee of 1%

  • Loan facilitation fee of 1%

  • Affidavit of kshs 200

  • CRB referencing kshs 200.


 GROUP LOANS

 

  1. KUMEKUCHA LOAN

Middle term Loan advanced to established and registered groups and institutions to finance income generating group or institutions project.

TERMS AND CONDITIONS

  1. Loan shall be granted to established church groups, social group, investment groups and institutions that have joined the Sacco through group or corporate memberships.

  2. The group shall have a minimum of 10 members and for institution shall be a Sacco member

  3. The group shall have contributed for a period not less than 3 months standing and should have an active account with the Sacco

  4. The minimum amount shall be Kshs 50,000 and a maximum of kshs 5,000,000 for established groups and maximum 10,000,000 for institution

  5. The loan shall be a short term with a maximum repayment period of 2 years(24 months)with a grace period of 2 month on principal

  6. The interest rate shall be 1.5% pm on reducing balance method

  7. Group shall be required to contribute an amount equivalent to 20 % of the total loan borrowed inform of group savings/deposit

  8. Loan shall attract loan application and appraisal fee of 1% on loan applied or Kshs 1000 whichever is higher

  9. A legal fee of Kshs 2500 shall be paid by the group to meet legal requirement

  10. Minimum shares of kshs 10,000 for those borrowing less than kshs 100,000 first loan and kshs 20,000 for those borrowing more than kshs 100,000.

  11. Loans shall be used on the intended project by the group .

  12. Any asset financed will be used as the security to the loan and shall be co owned until the loan is fully paid.


 

  1. PAMBAZUKA LOAN

Long term Loan advanced to established and registered groups and institutions to finance income generating group or institutions project.

TERMS AND CONDITIONS

 

 

  1. Loan shall be granted to established church groups, social group, investment groups and institutions that have joined the Sacco through group or corporate memberships.

  2. The group shall have a minimum of 10 members and for institution shall be a Sacco member

  3. The group shall have contributed for a period not less than 3 months standing and should have an active account with the Sacco

  4. The minimum amount shall be Kshs 50,000 and a maximum of kshs 5,000,000 for established groups and maximum 10,000,000 for institution

  5. The loan shall be a long term with a maximum repayment period of four years(48 months)with a grace period of 2 month on principal

  6. The interest rate shall be 1.5% pm on reducing balance method

  7. Group shall be required to contribute an amount equivalent to 33.5 % of the total loan borrowed inform of group savings/deposit

  8. Loan shall attract loan application and appraisal fee of 1% on loan applied or Kshs 1000 whichever is higher

  9. A legal fee of Kshs 2500 shall be paid by the group to meet legal requirement

  10. Minimum shares of kshs 10,000 for those borrowing less than kshs 100,000 first loan and kshs 20,000 for those borrowing more than kshs 100,000.

  11. Loans shall be used on the intended project by the group .

  12. Any asset financed will be used as the security to the loan and shall be co owned until the loan is fully paid.


Micro- Credit Loans 

  1. MICRO CREDIT LOAN

Short term loan granted to members of micro creditgroup payable within 12 month in equal installment. The loan is meant to assist Sacco members in organized group access finances before accumulating enough deposit.

 

LOAN FEATURES

  • Maximum loan granted is ten times ones deposit with 20,000 first cycle and graduated by 20,000 for the subsequent cycles to a maximum of 100,000 in the fifth cycle.

  • Maximum repayment period is 12 month.

  • Interest rate is 12% payable up front.

  • Appraisal fee of 1% on applied amount and affidavit 200.

  • Crb referencing 200.

  • Loan form fee of 100.

  • A top up can be done after the group member has paid 1/2 the period and 1/2 the amount.


 

  1. MICRO BUSINESS BOOSTER/MIBUBO LOAN

Middle term Micro credit loan granted to micro credit group members who have demonstrated credit worthiness in the micro finance program.

LOAN FEATURES

  • Medium term loan payable in one and half year (18 months) with minimum of kshs 80000 and a maximum of kshs150, 000.

  • Total loan advanced is 5 times one’s deposit.

  • Interest rate of 15% up front.

  • Loan application form fee ofkshs 100.

  • Crbreferencing kshs 200.

  • Loan appraisal fee of 1% and affidavit of kshs200.


 

 

 

 

 

 

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