Loan products
The Sacco offers a wide range of financial services under BOSA; the following products are offered;
Asset Finance Loan
Asset finance may be granted for the purpose of investing in machinery, personal vehicles,
The following conditions apply:-
- A member can get a facility of up to 3 times the members’ deposits.
- Loans shall be paid directly to the vendor
- The Sacco shall be a co-owner of the asset until such a time when the member fully repays his loan
- Repayment period for asset finance loans shall not exceed 36 months.
- Every member applying for an asset finance Loan must have completed repaying all other loans at the time of application.
- Interest rate for the loan is @ 1.5% per month on reducing balance
Business Loans
Business loans may be granted to members for purposes of starting or expanding their business. The following conditions apply:-
- A member can get a facility of up to 3 times the members’ deposits.
- Repayment period of up to 36 months.
- Every member applying for a business loan must have completed repaying all other loans at the time of application.
- Interest rate for the loan is @ 1.% per month on reducing balance
Emergency loans
Emergencies include sudden hospitalization, funeral expenses, court matters, unforeseen calamities.
The following conditions apply:-
- A member can get a facility of up to 3 times the members’ deposits.
- Repayment period shall be within 12 months.
- It attracts interest at the rate of 1% per month on the reducing balance.
- Processed within 48 hours of submitting a dully filled loan form
Group Loans
Group loans may be granted to groups to facilitate them invest. Such investments may be in assets such as land or for investment purposes so as to generate revenue for the group. The loans may be issued under the following conditions:-
- The group must have at least 5 members
- The group must make monthly savings contributions
- Facility given towards investment purposes
- A group loan can be up to 3 times the group’s savings with guarantorship
School Fees Loan
School fees Loans may be granted to a member for educational purposes.
the following conditions apply:-
- A member can get a facility of up to 3 times the members’ deposits.
- Repayment period shall be restricted to a calendar year
- School fee loan cheques shall be sent direct to the School where applicable and necessary.
- It attracts interest at the rate of 1% per month on reducing balance.
Top up Loans
Top Up loans are available to those servicing their loans and have the ability to service both loans concurrently.
- Applicant must have serviced the previous loan to at least 75% of the principal borrowed
- Repayment period is up to 30 months.
- It attracts interest at the rate of 1.2% per month on the reducing balance.
