Types of AMREF Sacco Loans Guide

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PRODUCT FEATURES. Enables you acquire assets and finance other development projects. Maximum Amount – 3 times member’s savings. Maximum period – 60 Months. Interest charged – 1% p.m. on a reducing balance (6.5% p.a.) Loans security – guarantors or assets in member’s ownership. Sacco Loans

Below are different types of AMREF Sacco loans. Amref Sacco is a savings and credit co-operative in Kenya that was founded on 7th September 1983 by staff members from AMREF Health Africa.

The award-winning Sacco has risen the ranks to become on the fastest-growing Saccos in Kenya. Most of AMREF Sacco members are employees of the member organizations, NGOs and companies within their common bond.

The Sacco also welcomes individuals who are referred to them by existing members. Today, we are going to look at different types of AMREF Sacco loans that may be of help to anyone who wants to save with them.

Types of AMREF Sacco Loans

Development Loan

1. Asset Security Loan

This is a loan property that can be secured by different types of collaterals, among them shares at NSE that have been traded, land, buildings and cars.

Loan Features

  • The maximum loan amount is Ksh. 7 million.
  • The minimum loan amount is Ksh. 3 million.
  • Loan repayment period is five years at 1.25% on reducing balance or six years at 1.5% on reducing balance.
  • Demonstrate the ability to repay the loan: proven sources of income or paycheck within the 1/3 rule of the Sacco.
  • The loan is times three of a member’s savings.
  • Valuation by an affirmed panel of valuers.
  • Chattels fee by the lawyer.
  • The borrower will cater for valuation fees among other things.
  • Duration for processing the loan is 45 days.

Assets Accepted as Security by AMREF Sacco

  • Cars that are 8 years and below.
  • Buildings and land.
  • AHDC title deeds.
  • NSE shares that have been traded.

2. Car Loans

This type of loan is tailored for AMREF Sacco members who want to purchase private cars. The same asset will be used as collateral for the financing.

Product Features

  • The maximum loan amount is Ksh. 5 million. A borrower needs to demonstrate the ability to repay the loan.
  • Financing can be up to 80% depending with the value of the car.
  • 36 months is the maximum tenure.
  • Interest rate is 1.5% p.m on a reducing balance.
  • Collateral will be the car being acquired.
  • The car being purchased should be less than 10 years old from the manufacture’s date.

3. Property Loans

This type of loan is for members who want to purchase properties or complete their development projects that have been left hanging.

Product Features

  • The loan amount is time three of a member’s savings.
  • The loan repayment period is four years
  • Interest is 1% per month on reducing balance of 6.5% p.a.
  • Collateral can be guarantors or member’s assets.

4. Normal Loan

This type of loan is given to members who want to purchase assets or complete their pending development projects.

Product Features

  • The loan amount is times three of the member’s savings.
  • The loan repayment period is 5 years.
  • Interest is 1% p.m on reducing balance of 6.5% p.a.
  • Collateral can be guarantors or member’s assets.

5. Shamba Loan

This type of loan is given to members who want to purchase land. Land in Swahili is called Shamba.

Product Feature

  • The loan is not tied to a member’s savings.
  • Demonstrate the ability to repay the loan.
  • Interest rate is 1.5% p.m on reducing balance.
  • The maximum loan repayment period is four years.
  • Guarantors are not a must but the borrower needs to deposit AHDC title deed that will act as collateral.
  • Cheques can be paid to AHDC.

Targeted Members

  • Members who have recently joined AMREF Sacco.
  • New members who don’t have enough savings on their account.
  • Old members who have finished their three times deposits requirement but are capable of repaying the loan.

6. Re-Financing Loan

This type of loan is an addition to the normal loan.

Product Features

  • The maximum loan amount is Ksh. 1 million.
  • Loan interest rate is 1% p.m on reducing balance of 6.5% p.a.
  • The loan repayment period is from the the initial time the normal loan was granted to the loan applicant.
  • Refinancing of normal loan is only two times during their lifetime.

Education Loan

1. Higher Education Loan

This type of loan is given to members who want to further their studies.

Product Features

  • The loan repayment period is 2 years.
  • Interest rate is 1% p.m on reducing balance of 6.5% p.a.
  • Supporting documents like university or college fees structure must be accompanied with the application form.
  • Cheques may have the name of the college or university where applicable.
  • Members of the higher education will be issued with loan at any one time.

2. School Fees Loan

This type of loan is given to members who want to clear their school fees.

Product Features

  • No maximum loan amount.
  • The loan repayment period is 1 year.
  • Interest rate is 1% p.m on a reducing balance of 6.5% p.a.
  • Supporting documents like fees structure must be attached as proof of school fees.
  • Cheques may have the name of the college or university where applicable.
  • School fees loan will be issued at any one time.

Value Addition Loan

1. Jipambe Merchandise Loan

AMREF Sacco has partnered with Hot Point appliances, Kingway tyres, Top tank ltd and Daima solar energy ltd for this facility.

Product Features

  • The maximum loan amount is times three of a member’s savings.
  • The loan repayment period is 1 year.
  • Loan interest rate is 1% p.m. on reducing balance of 6.5% p.a.
  • Cheques will be written directly to the merchants.

2. Insurance Financing Loan

AMREF Sacco has partnered with CIC insurance group to offer their members this facility. They cover motor commercial at 4.5% and motor private at 3.75%. Other types of insurance covered include personal accident, business, home and medical.

Financing Terms

  • The maximum loan amount will be determined after valuation.
  • The loan repayment period is 6 months.
  • Interest rate is 5%. (fixed and one-off).
  • Borrowers who are applying for loan amounts above Ksh. 50,000 will be required to have a guarantor.

Emergency Loan

1. Emergency Loan

This type of loan is given to members who have been caught up with unforeseen events or expenses, eg: hospital bills among other things.

Product Features

  • The maximum loan amount is the three times of a member’s deposits.
  • The maximum loan repayment period is 1 year.
  • Interest rate is 1% p.m. on reducing balance of 6.5% p.a.
  • Members who apply for emergency loans below Ksh. 50,000 will not be required to produce supporting documents.
  • Members who apply for emergency loans above Ksh. 50,000 will be required to produce proof of an emergency.
  • Members can only be given one emergency loan at a time.

2. Instant Pesa Loan

This type of loan is given to members who are in dire need of money.

Product Features

  • The maximum loan amount is Ksh. 70,000. (Times three of the member’s savings).
  • The loan repayment period is 5 months.
  • Interest rate is 6%. This is one-off.
  • Loan amounts below Ksh. 70,000 will be deposited to your M-Pesa account.

3. Salary Advanced Loan

This type of loan is given to members who want to meet their short-term needs.

Product Features

  • The maximum loan amount will be determined by your salary.
  • The loan repayment period is 1 month.
  • Interest rate is 3%. This is fixed and one-off.
  • No security needed.
  • Disbursement of the loan is within one day.

In case of any issue or inquiries related to AMREF Sacco loans, kindly contact the customer care desk using the contacts below.

AMREF Sacco Contacts

Tel: 020 6002184/5/6
Mobile: +254 722 139 585, +254 729 139 585, +254 732 515 797
Email: info@amrefsacco.org


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