Chama Loan

Chama loans are designed to enable registered self-help groups, welfare and investment groups to acquire loans for wealth creation of its members

Group must be registered with the relevant authority
Membership of Group shall be at least 10 members
Group shall provide minutes authorizing the application of a loan facility which shall be stamped and certified by oversight ministry.
At least 2/3 of group members must sign the minutes
Group must have saved consistently for a minimum of six months.

Maximum amount is 1 million
Maximum repayment period is 36 months
Minimum Sacco membership is 6 months
Interest rate is 15% p.a reducing balance
Processing fee is 2%, Insurance 0.7% p.a
Collateral – Shares and personal guarantee & indemnity for amount up to 1 million and tangible security (Log book and Title deed) for amount above 1 million.
Repayment should not exceed 90% of monthly savings in current and share account.