Loans

Adult members are eligible for loans subject to:

• completion of registration process and execution of requisite documentation
• 6 months of continuous saving with the SACCO

A Sponsor cannot borrow against and/or use the child’s savings to guarantee his/her loans.

All loans are insured. The insurance premium is charged to the applicant.

The SACCO maintains a comprehensive Loan Policy which provides general guidelines pertaining to types of loans offered, underwriting provisions, responsibility and reporting requirements.

The loans below are available to members of AICB SACCO.

Normal Loan

A normal loan shall be granted based on member’s savings

• The loan is repayable within 36 months
• A member can only access one normal loan at a time
• The applicable interest rate is 1% per month on reducing balance
• The Principle loan repayment shall be done separate from interest payment.

Emergency Loan

This loan is granted for unforeseen circumstances under the following conditions:

• Granted within specified limit
• The loan is repayable within 12 months
• A member can only access one emergency loan at a time
• The applicable interest rate is 1% per month on reducing balance
• The Principle loan repayment shall be done separate from interest payment.

Salary Advance

• Granted within specified limit
• Interest is at 10% per month on straight line basis
• The principle amount and interest is recoverable in one installment at the end of the prevailing month.

Education Loan

• Granted within specified limit
• The loan is repayable within 12 months
• Interest is at 15% per year on reducing balance
• A member can only access one Education loan at a time.

Medical Loan

• Granted within specified limit
• The loan is repayable within 12 months
• Interest is at 15% per year on reducing balance
• A member can only access one Medical loan at a time

Top-Up Loan

A Top-Up loan shall be granted to a member with loan balances and who wishes to take a normal loan. A Top-Up Loan shall be treated as a Normal Loan.

• The balance of the loan shall be reduced from the new loan
• The applicable interest rate is 1% per month on reducing balance
• The Principle loan repayment shall be done separate from interest payment.

Normal Loan after Cash Payment

A member may clear his/her outstanding Normal Loan balance by cash to get a new Normal Loan.

REQUIREMENTS FOR LOAN APPLICATION

• Copy of National ID Card or Passport
• A duly completed official Loan Application Form
• Proof of ability to pay
• The loan must be fully guaranteed
• Application must be submitted within defined timelines.

N.B: A nominal fee is charged for loan processing.