1. Who is eligible to access Stima Sacco Credit facilities
Members admitted in accordance with the membership policy
2. When does a member become eligible for a loan
A member becomes eligible after a minimum membership period of three months and on fulfilling all requirements of a specific loan product. Members who transfer their deposits from another Sacco are exempted from the waiting period.
How is a loan application made?
A loan application must be done in writing on prescribed forms which must be fully filled. The applicant must attaché all relevant documents. Alteration will not be allowed.
3. What is the difference between Shares, Deposits and Savings?
· The amount representing a member’s portion in the equity of the society as a co-owner.
· No member other than a Cooperative Society shall hold more than one-fifth (1/5) of the total shares
· Shares are not used to determine the eligibility of a borrower or a guarantor.
· Shares are not withdraw able but are transferable.
· Every member must make regular deposits towards alpha deposits in accordance with Savings and loans policies.
· They are not withdrawn in part or in full as long as a person is a member of the Sacco.
· These deposits may be used to determine the eligibility of a borrower or a guarantor.
In addition to shares and deposits a member may invest in a saving account. The Sacco provides the following savings products
§ Junior star
§ Silver seed
§ Flex savings
§ Fixed deposit
§ Msingi Bora Account
4. Does interest charged by the Sacco fluctuate during the term of the loan?
Any amendments on interest will affect new applications only.
5. Who decides on what interest to charge?
Interests on loans are reviewed from time to time by the BOD on recommendation of Management.
6. Can a member capitalize interest rebates or dividends to boost ones shares?
Yes, that is allowed. All that one needs to do is to instruct in writing
7. Can a member use dividends or interest rebates to clear loans
Yes by communicating the same in writing.
8. What are the acceptable Securities for a loan?
ii. Deposits in the SACCO
v. Bank guarantees
vi. Corporate guarantee
vii. Share certificates
ix. Endowment Insurance policies
9. Who is eligible to be a guarantor?
Any active member in good standing is allowed to be a guarantor provided that one has not over guaranteed.A guarantor must be willing and able to repay the loan guaranteed if the loanees fails to pay
10. What is the role of a guarantor?
Guarantors are jointly (together) and severally (individually) liable for the repayment of a loan in the event of the borrower’s default.
11. What are the rights of a guarantor?
i. The right to obtain a copy of the letter of guarantee or contract of guarantee and any other documents in relation to the loan transaction
ii. The right to the information on the outstanding balance of the account of the borrower with the Society subject to the borrowers consent.
iii. The right to call upon the borrower to pay off the loan to release him from all his liabilities under the guarantee. This right can be exercised at anytime and even before the Society has called upon the borrower to pay the debt.
iv. The right to be indemnified by the borrower for any payment made to the Society. This means that he can sue the borrower for the amount that he has paid to the Sacco.
12. What does a borrower need to know about a the loan the he is guaranteeing
i. Loan amount
ii. Repayment period
iii. Applicant source of income
iv. Applicants term of employment
v. Applicants retirement date
vi. Applicants contact details
vii. Any other details relating to the applicants character
13. What are available disbursement channels?
i. EFT(Electronic Funds Transfer)
ii. RTGS(Real Time Gross Settlement)
iii. Cash withdrawal from the teller
14. Can one clear a loan in full before repayment is over?
Yes, that is allowed and does not attract early clearance charge.
15. Who is a nominee?
· A nominee is the person designated by a member to receive the proceeds of any payable funds upon the death of the member
· All members are required to provide details of nominee(s) upon registering as members.
· One can change and/or update his/her nominee information as when and need arises
16. Can one alter loan repayment period during the repayment of the loan?
On loanees request the repayment period may be altered at any stage of repaying the loan provided that the request is within the limits of a particular loan term, and is endorsed by all guarantors, if extension.