Clearance of Loans
After repaying any loan(s) for some time, a member may decide to clear an outstanding loan(s) at once, before the scheduled repayment period in order to allow the member to qualify for additional or more loan amount. The following conditions must be fulfilled:
- Clearance by self; one month interest chargeable.
- Clearance by a bank; 4% interest chargeable except Super Loan which is charged10% interest.
- Clearance by Fundilima SACCO through offset from the newly acquired loans is charged 10% interest.
The interest shall be paid either in cash or through offset from the newly acquired loan(s).
These types of loans include popularly known as Yellow and Pink Loans.
- Yellow Loan
This is a loan repayable within one (1) month at an interest rate of 5% per month. The requirement is thatit should guaranteed, a copy of the most current pay slip attached and ability to repay and is not pegged to deposits held by a member in the BOSA.
- Pink Loans
This is a loan repayable within five (5) months at an interest rate of 25% flat rate.The requirement is that it should guaranteed, a copy of the most current pay slip attached and ability to repay and is not pegged to deposits held by a member in the BOSA.
This is a loan granted to members who after receiving the development loans do not complete the intended project. This loan should be applied within a period of 6 (six) months after the previous development loan has been granted. The project being refinanced must be the same as development loan previously financed. The entire amount of loan being refinanced must be fully guaranteed by bona fide members, and must be repaid within the initial loan repayment period. The interest rate for refinancing is 1.25% per month.
A member is given 2.7 times his/her deposits or the ability to pay. These are loans repayable at a longer period from 36 months to 60 months. The interest rate is 15% per annum or 1.25% per month on reducing balance method. Its purpose is to cater for member’s economic development or advancement. Examples of such loan are for acquisition of land and construction of houses among others. The requirements for this loan is that a member must present two most recent employer’s pays lips which should not reflect any un-cleared loans [emergency] and full amount of loan requested must be fully guaranteed by bona fide members.