Nass policy | NASS Sacco

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.

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.

No member will be allowed to withdraw from the society unless the member’s loan is repaid in full and guarantee obligations cleared.
Whenever loan repayment AND interest are not received in FULL within thirty (30) days after the due date and no explanation on the default are provided, such loans shall be deemed to be in default.
On default, the communication to the defaulter shall be done within the first 30days.
When no repayments are forthcoming during the second month of default; a reminder shall be sent out to the defaulter with the guarantors in copy and the guarantors will also be informed and notified that they shall be called upon to repay the defaulted loan from the end of the third month of default.

In the third month of default, the guarantors are notified and attached to repay the defaulted loan after members deposits are netted off with the outstanding amount and the accrued interest. The net liability is distributed equally to the guarantors unless they had specified the guaranteed amounts.
If a member becomes a defaulter as described above, his details will be forwarded to the Credit Reference Bureau (CRB) after the lapse of a one-month notice.
However, the society shall maintain efforts to recover the defaulted loan from the Loanee and/or guarantors.