Loans

• A member must have completed at least six (6) months of membership from the date of enrollment has been maintaining a monthly savings deposit contribution of not less than KES 1,000 and KES 10,000 respectively for individual and corporate members.
• Download the loan application form from our website, fill it duly and submit to us on teamleader@aaksacco.com.

• Subject to availability of funds, the Loans Committee reviews all initial applications on a first-come-first basis before forwarding to the Executive Committee for disbursement.

• No. However, a refinancing loan may be given under the discretion of the Management Committee subject to availability of funds.

• Yes. Once the previous loan is duly paid, a member is free to apply for another so long as the member has been consistent in concurrently remitting the monthly savings deposits as they service their loans.

• All loans applied for must be secured by guarantors or an approved security. All guarantors must be members of the Society.
• The total savings deposits of the borrower and those of the guarantors must be equal to or more than the loan applied for as well as the loan interest, and accompanying insurance and loan processing fees.

Note on Guarantorship:

• It is important to understand that when you guarantee a loan to another member of the SACCO you are responsible for your part and also for the whole of the loan when the member is in default.
• It is the responsibility of the members who have guaranteed a member to ensure that the member pays the loan especially if the member leaves employment with an affiliate institution.
• The SACCO will normally alert guarantors when a member is leaving and owes the SACCO. The guarantors together with the member have to inform the SACCO on the way forward regarding how payment will be made.
• If a member defaults, the SACCO will recover the loan from the guarantors’ deposits and the guarantors can seek legal redress and/or the Ministry of Cooperatives tribunal.

• Development Loan: Granted for the purpose of long term development.
• Emergency Loan: Covering emergency situations and any other unforeseeable circumstances beyond a member’s control.
• Re-Financing Loan: Granted to enable a member complete the project under which development/short-term loan was granted and satisfactorily utilised.

• Step 1: Sacco Office immediately acknowledges receipt of loan application form from member and sends an email.
• Step 2: Loans Committee reviews the application and gives their recommendation.
• Step 3: On receipt of the Sacco Loans Committee Report, the application is forwarded to the Executive for disbursement.
• Step 4: Member prepares a standing order of the monthly repayments and signs loan terms and conditions.
• Step 5: Loan disbursed.