Normal Loan
This is also referred to as a development loan. It is not restricted in its usage. The maximum amount that can be accessed by members is Ksh. 2.5 M. The maximum repayment period is 60 months. It attracts interest of 1% per month, hence 12% p.a.
The mandatory minimum monthly contributions for the Normal Loan are as follows:
- Up to Ksh. 1,000,000 - 1% of the loan applied.
- From Ksh. 1,000,000 to Ksh. 2,000,000 - 0.75% of the loan applied.
- Over Ksh. 2,000,000 - 0.5% of the loan applied.
Okoa Loan
This product is targeted at members wishing to take bigger loans at higher interest, with the option of longer repayment periods. Members can borrow up to a maximum of Ksh. 3 m. The Okoa Loan can buy/offset other loans. The maximum repayment period is 72 months. It attracts interest of 1.25% per month, hence 15% p.a.
The mandatory minimum monthly contributions for the Okoa Loan are as follows:
- Up to Ksh. 1,000,000 - 1% of the loan applied.
- From Ksh. 1,000,000 to Ksh. 2,000,000 - 0.75% of the loan applied.
- Over Ksh. 2,000,000 - 0.5% of the loan applied.
Refinance Loan
This is a top up loan. It can be taken more than once to ‘refinance’ an original loan. However, its repayment period is not extended beyond the maturity of the original loan. A normal or Okoa loan can be ‘refinanced’.
Education loan
This product is offered to members to aid them in taking care of their education costs. A member can borrow up to a maximum of Ksh. 300, 000. It is payable within the calendar year. It attracts interest of 1% per month, hence 12% p.a. It is subject to a member’s contribution if the member’s contribution is three times below the maximum set limit of Ksh. 300,000.
Emergency loan
This product is offered to members to enable them take care of emergencies. Members can borrow up to a maximum of Ksh. 300,000. The maximum repayment period is 12 months. It attracts interest of 1% per month, hence 12% p.a. It is subject to a member’s contribution if the member’s contribution is three times below the maximum set limit of Ksh. 300,000.
Advance loan
This product is offered as a last credit resort, in cases where members need immediate cash, as they are already servicing other loans. Members can borrow up to a maximum of Ksh. 100,000. It is payable within the Oxford University Press EA calendar year (i.e. April to March the following year). It attracts interest of 1.25% per month, hence 15% p.a. It is subject to a member’s contribution if the member’s contribution is three times below the maximum set limit of Ksh. 100,000.
Car loan
This product is offered to members to finance purchase of a vehicle. The maximum amount to be borrowed is Ksh. 1.5 M. Repayment period is maximum 60 months for vehicles not older than 3 years and 48 months for vehicles between 3 years and 8 years. One can borrow up to three times one’s contributions. Interest is 1.25% per month on reducing balance. The member and the Sacco shall jointly own the vehicle, until the loan is cleared. The buyer shall shoulder all the costs such as valuation and transfer costs, and shall ensure the vehicle is comprehensively covered.
Assets/Development loan
This product is offered to members to finance assets or development on their piece of Land. The maximum amount to be borrowed is Ksh. 1.5 M. Repayment period up to a maximum 60 months. One can borrow up to three times one’s contributions. Interest is 1% per month on reducing balance. Loan is self-guaranteed up to a maximum savings. The title of the land is used as security. The Loan applicant shall shoulder all the costs such as valuation and other related costs and loan application dully filled.
