mzimasprings@strathmore.edu +254 (0) 797 686 484
Application

Loans

Normal Loan (Checkoff)

Purpose

  • Granted as short-term loans for investment purposes and repayment through check off system

Interest rate

  • 1% per month on reducing balance

Suggested limit, terms & incentives

  • Maximum of 3 times of member deposits or a limit of Kshs 4,000,000 (subject to the 1/3 rule)
  • Only one normal 1 loan shall be granted at a time
  • Easy loan top up facility possible

Suggested maximum term

  • 72 months

Outside Payroll Loan

Purpose

  • Loan serviced through bank standing orders, bank debit advice and not through check- off system.

Interest rate

  • 1 % per month on reducing balance. Interest rate for this loan shall be revised by the MC from time to time

Suggested limit, terms & incentives

  • Maximum of 3 times of member deposits or a limit of Kshs 3,000,000
  • Only one off payroll loan shall be granted at a time
  • Easy loan top up facility possible
  • The minimum number of guarantors shall be four

Suggested maximum term

  • 60 months

Emergency loan

Purpose

  • Granted due to unforeseen circumstances.

Interest rate

  • 1% p.m. on reducing balance.

Suggested limit, terms & incentives

  • Maximum of 3 times of member deposits or a limit of  Kshs. 250,000 (subject to the 1/3 rule)
  • Only one  emergency loan shall be granted at a time
  • Easy loan top up facility possible

Suggested maximum term

  • 18 months

School fees loan

Purpose

  • Granted for educational purposes

Interest rate

  • 1% p.m. on reducing balance.

Suggested limit, terms & incentives

  • Maximum of 3 times of member’s deposits up to a maximum of Kshs. 150,000 (subject to the 1/3 rule)
  • Only one school fees loan can be granted at a time
  • School fees invoice
  • Easy loan top up facility possible

Suggested maximum term

  • 12 months

Student loan

Purpose

  • Targeted to Strathmore students who have borrowed funds to cater for their needs or for investment purposes

Interest rate

  • 1% p.m. on reducing balance.

Suggested limit, terms & incentives

  • Maximum is equivalent to student member deposit.
  • The loan should be fully guaranteed (fellow students can guarantee)
  • Only one student loan can be granted at a time
  • Easy loan top up facility possible

Suggested maximum term

  • 24 months

Insurance premium finance loan

Purpose

  • Advanced to members to pay insurance premiums

Interest rate

  • 1.5% per month on declining balance.

Suggested limit, terms & incentives

  • Amount shall be equivalent to the actual insurance requirement.  The loan should be fully guaranteed

Suggested maximum term

  • 6 months

Salary advance

Purpose

  • Shall be granted against a member’s salary

Interest rate

  • A commission will be charged as follows;

    • 5% on the first month
    • 6% on the second month
    • 7% on the third month

Suggested limit, terms & incentives

  • One salary advance per month
  • No guarantors needed

Suggested maximum term

  • 3 months

Karibu Loan

Purpose

  • Granted to new members who have not attained the 6 months’ probation period but have been in the SACCO for at least 3 months

Interest rate

  • 1% per month

Suggested limit, terms & incentives

  • Maximum of 3 times of member’s deposits up to a maximum of Kshs. 100,000 (subject to the 1/3 rule)
  • Only one Karibu loan can be granted at a time
  • Loan should be fully guaranteed.
  • Upon attainment of the 6-month period, a member cannot be offered the Karibu loan.

Suggested maximum term

  • 24 months