i). A Member shall qualify after six months of consistent savings.
ii). Maximum loan amount shall not exceed 3 times the member’s deposits.
iii). Rate of interest shall be 1% P.M on reducing balance or as determined by the BOD from time to time.
iv). In the case of purchasing of Motor Vehicle, the SACCO shall not finance public services vehicles (PSV)
v). The year of manufacture for the Motor vehicle being purchased shall not be more than 9 years from the year of manufacture
vi). Valuation of the Motor vehicle must be done before the loan is approved at the cost of the loan applicant.
vii). The loan security shall be the Motor vehicle.
viii). The logbook shall be under the seller’s name if not the owner of the logbook must swear an affidavit. The logbook shall be jointly registered.
ix). The maximum repayment period shall be 24 months
x). The vehicle being financed must have a comprehensive insurance cover issued by insurance company that has established an MOU with the society
xi). The vehicle must be installed with a tracking device by the SACCO’s approved service providers at the member’s cost.
The applicant must provide,
- A sale agreement between the loan applicant and the seller,
- Quotation invoice,
- Identification documents of the car seller (I.D copy, KRA pin certificate, Registration certificate (for a company),
- Copy of the logbook,
- Valuation report of the car,
- Member’s I.D copy,
- Member’s KRA pin certificate,
- Member’s recent passport size photo,
- CRB report of the member,
- Six months bank statement,
- Any other documents required by the credit committee.
The applicant upon approval must ensure proper online transfer of logbook ownership to joint ownership between the member and the society or transfer/change ownership fully to the society until the facility is paid in full. The transfer of ownership should be initiated online by the owner of the logbook as required by the NTSA.
Upon approval of the loan‘ the Sacco’ shall issue an undertaking to remit the funds within 21 working days and seller must submit the original logbook to the society.
Processing fees 3% -one off and credit life insurance 1.5% annually.