4.Shamba loan

Loans shall be granted to members or groups who wish to acquire property or use property as security or to members who are seeking financing to clear their balance of the property they have acquired from  Housing or any other partner.

a) For a house financing or mortgage the maximum repayment period shall be 48 months and funds will be disbursed in phases.

b) An existing member shall qualify after three months of consistent savings.

c) Rate of interest shall be 1% P.M on reducing balance or as determined by the BOD from time to time.

d) Processing fees 3% -one off and credit life insurance 1.5% annually.

e) The project being financed shall be used as security for the loan; therefore the SACCO shall retain the original ownership documents until the member clears the loan.

f) The property shall be under joint ownership between the member and the SACCO.

g) In case the title deed is ready before the member clears the loan, the title deed must be charged at the cost of the member following the procedure below:

• The member shall authorize the society to pay for charging at their cost and revise the outstanding loan balance with the cost,
• Failure of the member to honor the charging requirements shall mean the society authorizes that company to produce the title deed jointly with the society’s and member’s name or fully in the name of the society.
• Clean CRB report