Different Types of Mwalimu Sacco Loans in Kenya

Mwalimu Sacco Loans, Mwalimu Sacco, mwalimu sacco contacts,
Mwalimu Sacco Loans

Today, we are going to share different types of Mwalimu Sacco Loans in Kenya that may be of help to you. Mwalimu Sacco is one of the most vocal Saccos in Kenya that have boosted the economic livelihood of their clients.

The sacco was formed in 1974 under Cooperatives Socities Act as a Sacco Society.

Most of Mwalimu Sacco members are from Teachers Service Commission and tutors in Tertiary Institutions.

Sometimes back, the Sacco came up with a number of loans that meet various needs of their clients across Kenya. Their interest rates varies depending on the type of loan one wishes to apply.

Types of Mwalimu Sacco Loans in Kenya

BOSA LOAN PRODUCTS

1. Wezesha Loan

This type of loan does not require a member to wait for 6 months before applying for a loan. Once your first saving deductions have been processed, then one can borrow up to Ksh.600,000.

1/3 of Ksh. 600,000 is what will be retained as savings in the account of new members.

Terms and Conditions

  • Wezesha loan is only given to newly registered members only.
  • 13% p.a is the interest rate on reducing balance.
  • The loan runs for a maximum period of 36 months (3 years).
  • 2% processing fee will be deducted on the money to be advanced.
  • Maximum loan amount one can be given is Ksh. 600,000.
  • Wezesha loan should be fully guaranteed.
  • The Sacco by-laws is what will determine the qualification of members who want to apply for loans.
  • Boosted shares shall gain dividends on pro-rata basis.

2. Emergency Loan

This type of loan is given to members on unforseen circumstances.

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Terms and Conditions

  • 1% p.m is the interest rate on reducing balance.
  • Repayment period is 12 months (1 year).
  • Multipler is 5 times (subject to 1/3 salary rule).

3. School Fees Loan

This type of loan is given to members for education purpose only.

Terms and Conditions

  • 1% p.m is the interest rate on reducing balance.
  • Repayment period is 12 months (1 year).
  • Multiplier is 5 times (subject to 1/3 salary rule).

4. Normal Loan

This type of loan is given to members who have financial constraints. Its given as a short term loan.

Terms and Conditions

  • 1% p.m is the interest rate on reducing balance.
  • Repayment period is 36 months (3 year).
  • Limit is times 3 of what a member has deposited (subject to 1/3 salary rule).

5. Development Loan

This type of loan is given to members who want to invest.

Terms and Conditions

  • 1.17% p.m is the interest rate on reducing balance.
  • Repayment period is 48 months (4 year).
  • Limit is times 4 of what a member has deposited (subject to 1/3 salary rule
  • Given as a medium-term loan for investment purposes only.

6. Vision 84 Loan

This is a long term loan given to members for investment purposes only.

Terms and Conditions

  • 1.29% p.m is the interest rate on reducing balance.
  • Repayment period is 84 months (7 year).
  • Limit is times 5 of what a member has deposited (subject to 1/3 salary rule.

BUSINESS LOANS

1. Individual Loan

This type of loan is given to members with well established businesses. The mimum loan amount one can be given is Ksh. 501,000 with maximum being Ksh. 5,000,000.

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Terms

  • 1.25% p.m interest rate on reducing balance.
  • Repayment period is between 3-36 months depending on the loan issued.
  • Individual loan is self-secured and acceptable securities include commercial title deeds and logbooks.

2. Group Loans

This type of loan is given to individual members within a group for financial expansion in an going business.

The business must be at leats 6 months and group loans are given based on tiers.

  • Tier one KSH 30,000 – KSH 150,000 (1.33% pm) payable in maximum 1 year.
  • Tier two KSH 151,000 – KSH 250,000 (1.33% pm) payable in maximum 2 years.
  • Tier three KSH 251,000 – KSH 500,000 (1.33% pm) payable in maximum 3 years.

Business ability is what will propel a group to graduate from one tier to another within the program.

NB: Group need to start from tier from.

At tier 3 is when a person can borrow as an individual client without the need of being in a group.

Mwalimu Sacco Contacts

Mwalimu Towers,
Hill Lane, Off – Mara Road, Upperhill.
P.O. BOX, 62641 – 00200,
Nairobi, Kenya.
Tel: 020 295 60000, 0709 898 000
Free SMS Line: 20156
Email: mwalimu@mwalimunational.coop

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