Loans WASKOM SACCO loan policy is governed and regulated by the Co-operative Societies’ Act and Rules, Circulars from the commissioner for Co-operative Development, the societies’ own by-laws and management policies.
Development Loan
This product is purposely designed to provide means to members who wish to access funds for personal investments and comfortably repay within a longer time period.
| Amount Qualified | Interest Rate | Maximum Repayment Period | Security | Loan application processed & issued within | Action if a member default in repaying the loan |
| 3 times of a member’s shares (i.e. savings) with further consideration to a loan repayment amount not exceeding two-thirds of a member’s gross salary/income | 1% Reducing Balance method | 48 months | Guaranteed by any active member | 30 days | Loan balance including interest is recovered from member’s shares and any excess recovered from guarantors shares |
Education/School Fees loan
This product is for those members who wish to be financed by the Sacco in pursuing further education of paying for school fees for a family member.
| Amount Qualified | Interest Rate | Maximum Repayment Period | Security | Loan application processed & issued within | Action if a member default in repaying the loan |
| 3 times of a member’s shares (i.e. savings) with further consideration to a loan repayment amount not exceeding two-thirds of a member’s gross salary/income | 1.15% Reducing Balance method | 12 months | Guaranteed by any active member | 10 days | Loan balance including interest is recovered from member’s shares and any excess recovered from guarantors shares |
Emergency Loan
This product enables a member to quickly access funds from the Sacco to meet urgent financial commitment and repay and comfortably repay within a long time period.
| Amount Qualified | Interest Rate | Maximum Repayment Period | Security | Loan application processed & issued within | Action if a member default in repaying the loan |
| 3 times of a member’s shares (i.e. savings) with further consideration to a loan repayment amount not exceeding two-thirds of a member’s gross salary/income | 1.5% Reducing Balance method | 12 months | Guaranteed by any active member | 5 days | Loan balance including interest is recovered from member’s shares and any excess recovered from guarantors shares |
Instant Loans
This product enables a member to quickly access funds from the Sacco to meet urgent financial commitment and repay within the same month the loan is issued to him/her.
| Amount Qualified | Interest Rate | Maximum Repayment Period | Security | Loan application processed & issued within | Action if a member default in repaying the loan |
| Amount applied for should not exceed 40% of a member’s net salary/income | 10% Straight Line method | Next month end | Member’s Salary or Shares (i.e. savings) | 3 days | Loan balance including interest is recovered from member’s shares or salary |
Flex Loan
This product is suitable for those members with no any other loan deductions from the Sacco. This product does not allow one to take Instant loan while his/her Flex loan is active.
| Amount Qualified | Interest Rate | Maximum Repayment Period | Security | Loan application processed & issued within | Action if a member default in repaying the loan |
| Minimum amount applied for should be Kshs. 10,000 and not exceeding average net salary/income of a member for the past 3 months | 12% Straight Line method | 3 months | Guaranteed by any active member | 10 days | Loan balance including interest is recovered from member’s shares and any excess recovered from guarantors shares |
Plot Loans
With the Waskom Housing bringing on board investments such as land/plot ownership, this product gives a member an opportunity to purchase land by seeking financing from Waskom Sacco. This product (which has similar features like the Development loan) provides competitive repayment tariff to members.
| Amount Qualified | Interest Rate | Maximum Repayment Period | Security | Loan application processed & issued within | Action if a member default in repaying the loan |
| 3 times of a member’s shares (i.e. savings) with further consideration to a member’s gross salary/income | 1.0% Reducing balance method | 36 months | The parcel of land itself if the security. No guarantors | 30 days | The parcel of land is repossessed from the member. |
Loan Insurance
It is mandatory that big loans with multiple repayment installments are to be covered under an insurance policy. WASKOM operates an in-house Risk Fund scheme that covers for death and permanent disability.
Some of the key benefits include minimized financial losses, cost and protection on member’s funds amongst others.
The features include:
- Covers society members aged between 18 an 65years who have loan balances.
- Refund of premium in case the loan is repaid ahead of scheduled time.
- The cover ends immediately the loan is fully repaid.
- The cover is extended to member’s deposits on fixed amount and rate.
- The premium is calculated using this formula:
The policy does not cover for:
- Loan balances for members who have attained age 66 years in case of death.
- Loan balances for members who have attained age 60 years for total permanent disability.
- Loans not declared by the insured to the company.
- Defaulted loans.
- Interest and any other costs on the loan balance.
- Claims arising from self inflicted injuries
Procedure for taking the insurance cover is as follows:
- Complete relevant proposal form.
- Complete a transformation schedule giving names of loanees, amount of outstanding loans balance, and remaining period of repayment.
- The insurance company (i.e. CIC) will compute the premium and advise the SACCO.
- The cover will commence immediately the company receives payment.
Procedure for Claim is a follows:
- All claims should be notified to the company immediately but not later than the period stipulated in the policy.
- Notification can be verbal, in writing, or through a personal visit to any of the company offices countrywide.
- No claims will be admissible if reported outside the policy provisions.
- The company will settle all admitted claims immediately after all supporting documents have been received.
These documents can and may include:
- Copy of death certificate.
- Loan application forms for all outstanding loans.
- Member’s statement.
- Membership application forms.
- Latest pay-slip of the deceased.
- Copy of identity card.
- Physician’s statement of disability for all disability cases. All disability claims shall have all relevant correspondences between the Doctor and employer, employer and employee and the medical report.