The product is designed for members who have exhausted their deposits borrowing ability but have capacity to repay through payroll.

Features

• Loan is repayable within a maximum of 3 years
• Interest rate of 14.5% per year on a reducing balance
• Proof of ability to pay through payroll.
• Maximum aggregate amount of loan outstanding for all Fosa loans at any one time must not to exceed Ksh.1 Million.

• Qualifying amount is 2 times Junior Account(s)’ savings up to a maximum KShs. 1,000,000.00 subject to the one-sixth rule.
• Members operating several Junior Accounts have the option of consolidating the savings in all the accounts to apply for just one loan.
• Interest rate is 12% per annum on the reducing balance.
• Maximum Repayment period is 6 months subject to the current employment contract.
• Eligibility - Loan granted to members operating active and regular Junior Savings Accounts.
• A minimum of 2 guarantors required.
• The Loan Security is member’s own and guarantors’ deposits.
• After loan disbursement, monthly savings to Junior Account shall be increased to cater for the loan repayments.

1. Minimum qualifying membership of 6 months with regular monthly contributions to the SACCO.
2. Member should be registered for mobile banking services.
3. Appraisal to be done by mobile credit scoring.
4. Maximum advance amount is Kshs 100,000 subject to individual scoring.
5. Maximum repayment period is 3 months (90 days).
6. The borrower is free to pay an amount that they are comfortable with within the period but must clear the outstanding loan balance by end of the third month (90 days).
7. Interest charge of 5% flat rate.
8. At the end of each month (30 days), the balance rolls over and the normal fee of 5% is charged on the balance rolled over.
9. The loan is considered defaulted if on or after the 90^th day the loan has not been paid in full.
10. Ten (10) days added period before recovery action. Every day of the 10 days will attract a penalty of Kshs 500/= per day
11. Where payment is not made after the extra 10 days, the outstanding balance will be recovered from the deposits immediately and the member barred from further borrowing until the deducted deposits is repaid/reinstated.
12. Funds will be disbursed to the member’s FOSA account
13. Payments are done by direct deposit or mobile transfers.

Features

• The maximum amount is Ksh. 1 Million.
• The interest charged will be 14.5 % per annum on a reducing balance
• The loan shall be repayable within 12 months from the time of issue
• A member must remit their salary through the Sacco or have a direct debit agreement to qualify for this loan.