Dear Member,
RE: NEW PRODUCTS AND REVIEW OF TERMS FOR EXISTING PRODUCTS
As part of our policy to continually review products to take care of members changing needs and the operating environment dynamics, we are pleased to announce new products and changes as follows
.
1.Deposits Boosting Facility
This facility enables members to borrow funds from the Sacco to increase their deposits in order to qualify for higher loans amount. A member will be advanced equivalent of up to 100% of own deposits subject to a maximum of Kshs. 200,000, which will be credited to his/her deposits. A one-off fee of 5% will be charged on the boosted amount. Additionally, insurance premiums will be charged at 0.35% on the boosted deposits and the resultant loan. The boosted deposits amount, the fee thereon and the additional insurance premiums will be recovered from the loan applied at the point of disbursement.
2.Junior Savings Account
A member can open and operate a savings account for children under 18 years of age. The savings will earn an interest of 6% per annum. For the account to earn interest, the account balance should be more than Kshs.10,000. A member can withdraw only once every six months. Joining fee of Ksh.1,000 and withdrawal fee of Kes 200 will be charged.
3.Others
a.Restructuring of Loans
Restructuring of loans was introduced in the year 2020 as a temporary measure owing the effects of COVID-19 on members’ earnings. It allows members with the consent of guarantors, to extend the repayment period on running loans so as to reduce monthly repayment. The Board has now allowed restructuring as a permanent feature. A one-off fee of 2% will be charged on the restructured loan balance.
b.Change of Demand Savings Account Name
Under the Legal Notice No. 82 of 2020 of the Sacco Societies (Non–Deposit taking Business) Regulations, the Sacco Societies Regulatory Authority (SASRA) requires a non-deposit taking Sacco Society to align its products and operations with its licensed business. This has necessitated a change of the Demand Savings Account name which will henceforth be known as Jipange Savings Account. Other terms and conditions remain unchanged.
4. New Products
| Product Name | Product Description | Maximum loan Amount (Ksh.) | Max. Repayment Period (Months) | Interest Rate (Per Month) | Loan to Deposits Factor |
| Karibu Loan | This is a loan for members who have been with the Sacco for less than 6 months. | 500,000 | 12 | 1.5% | 3 |
| Jipange Loan | This loan product will be based and fully guaranteed by the Jipange Savings. | Based on Jipange Savings balance | 12 | 1% | 1 |
| Junior Loan | This loan product will be based and fully guaranteed by the Junior Savings. | Based on Junior Savings balance | 12 | 1% | 1 |
5.Review of Terms on Existing Products
| Product Name | Changes | Maximum loan Amount (Ksh.) | Max. Repayment Period (Months) | Interest Rate (Per Month) | Loan to Deposits Factor |
| Salary Advance | To allow repayment period options of either 1 or 2 months | 50,000 50,000 | 1 2 | 3% 5% | 1 1 |
| Instant Loan | To increase maximum repayment period from 24 to 36 months | 500,000 | 36 | 1.125% | 3.5 |
All the above will take effect from 1st August 2022.
Please contact the Sacco office for any clarification.
Thank you.
Phillip Muchiri
Hon. Secretary