BOSA LOAN PRODUCTS

(1)     Wezesha Loan 

Wezesha (to enable) loan is a product where members with the ability to pay/service a loan but have not saved enough shares to qualify for one, can access the facility from Mwalimu in form of an advance while we retain part of it as savings. One is able to access a loan of up to Ksh.600, 000 and 1/3 of it is retained as their shares.

Terms and conditions of wezesha loan
  1. The minimum period for a member to qualify shall apply as per the sacco by-laws.
  2. Due to some extra resources that shall be needed for processing the loan,2% wezesha processing fee shall be charged on the amount to be advanced.
  3. The Wezesha loan should run for a maximum of 36months.
  4. The shares boosted shall earn dividends on pro-rata basis.
  5. The maximum loan amount to be issued shall not exceed Ksh.600, 000.
  6. The loan should be fully guaranteed.
  7. This product is for new members only.
  8. Rate is 13% p.a on reducing balance.
(2)     Emergency Loans
  1. Granted for unseen circumstances.
  2. Repayable in 12months.
  3. Only one emergency loan can be granted at a time.
  4. Given within a member’s entitlement.
  5. Maximum limit is a member’s deposits x5 (subject to 1/3 salary rule).
  6. Applicable interest rate is 1%p.m on reducing balance.
(3)     School Fees Loans
  1. Granted for educational purposes.
  2. Repayable in 12months.
  3. Only one school fees loan to be granted at a time.
  4. Given within a member’s entitlement.
  5. 1% p.m interest rate on reducing balance.
  6. Maximum limit is a member’s deposit x5(subject to 1/3 salary rule).
(4)     Normal Loans
  1. Granted as short-term loans for investment purposes.
  2. Repayable in 36months.
  3. One normal loan to be granted at a time.
  4. Limit is a member’s deposits x3(subject to 1/3 salary rule).
  5. 1%p.m on reducing balance.
(5)     Development Loans
  1. Granted as medium-term loans for investment purposes.
  2. Repayable in 48months.
  3. One development loan granted at a time.
  4. Maximum limit is a member’s deposits x4(subject to 1/3 salary rule)
  5. Applicable interest rate is 1.17%p.m on reducing balance.
(6)     Super Loans
  1. Granted as long-term loans for investment purposes.
  2. Repayable in 60months.
  3. Only one super loan granted at a time.
  4. Maximum limit is a member’s deposits x4(subject to 1/3 salary rule)
  5. Interest is at 1.20%p.m
(7)     Vision 84
  1. Long term loans for investment purposes.
  2. Repayable in 84 months
  3. Limit is a member’s deposits x5(subject to 1/3 salary rule).
  4. Interest rate is 1.29 p.m on reducing balance.

 

WELFARE SERVICES.

Burial Benevolent Fund-BBF.

  • Used to accord members and their immediate families a decent burial
  • Monthly contribution is ksh.150

 

Person. Entitlement in Ksh.
Self 60,000.
Spouse. 55,000.
Own children. 35,000. (up to a max of 6 children.)
Own parents. 20,000.
Parents in-law 15,000.

 

Risk fund.

  1. A compulsory insurance scheme for all members.
  2. Monthly contribution is ksh.300. This is used to pay the outstanding loans of deceased members and double the shares to be paid to the nominee(s)

For efficiency in payment, the members should:

  1. Confirm and update their nominees with the sacco to avoid legal tussles. In case of more than one nominee, clearly indicate the percentage allocation for each nominee.