Karibu Member Loan Image
Karibu Member Loan Particulars
  • TThis is a loan reserved for new members to the sacco.
  • The interest rate is 1.25% on reducing balance.
  • Members who are old or taken other loans are not eligible for this loan.
  • The loan is repayable in 36 months.
  • Maximum amount eligible depends on the salary range.
  • A third of the amount eligible is retained as deposits.
Download form
Loan Borrowing Regulations
  • A member must have contributed a minimum share capital of Kshs.12,000
  • A member must be at least 3 months old
  • Lumpsum contribution can be considered in loan appraisal after three months in regard to their payment or pay a 5% fine for them to mature immediately
  • All loans must be repaid monthly by the 10th of the following month.
  • A member is entitled to one or more law types, all running at the same time
  • A member cannot have more than one loans of the same type all running at the same time
  • Pledge of future earnings which can include terminal benefits
  • If a member for any reason does not have guarantors and decides to self-guarantee, their deposits should be equal or more than the loan requested.
  • When aggregated, all loans applied for and those ongoing, the amount shall not exceed the member's deposits times three at any given time.
  • If a member clears the loan balance by cash, and immediately applies for the same type of loan or any other loan within 30-days of clearing the balance, this shall also be considered as refinancing and shall attract 5% penalty. However, there will be exceptions for this provision given the reasons prevailing and upon approval by the credit committee to forego this clause.
Loan Guarantees
  • Unless the loan applied for is equal to or less than the member’s deposits it must be secured by guarantors or other acceptable collateral.
  • Unless allowed by the Credit Committee through appraisal, no member shall be allowed to guarantee more than four loans at any given time.
  • Members of the Board of Directors, Supervisory committee and staff shall not guarantee any loans.
  • Guarantors must be members of the society.
  • The obligation of the previous guarantors shall cease upon change of guarantors and subject to the new guarantor being accepted by the society.
  • A members’ deposits pledged as security for other members’ loan shall not be surrendered to off-set his/her own outstanding loan, unless the former can provide an alternative security for the latter’s loan or replaced with a new guarantor.
  • Loan recovery (from applicant or from guarantor) can be done through regular payment as per agreement (deposits, payroll deduction) or from the deposits of applicant and guarantors.