The main objective of the Sacco
is to provide members with an opportunity to save
funds and obtain loans for provident and productive
purposes. However, over the year the society has diversified
its activities and services in its endeavor to satisfy
member’s demands.
WHAT PRODUCTS AND SERVICES ARE
AVAILABLE IN THE SOCIETY?
Over the years the Society has expanded
its services and products to meet diverse needs and
aspirations of the members. The Society being a member
owned entity prides itself in being member focused
so that the development of products and services are
centred around the members needs.
The Society has in store the following
products and services for consumption by the members.
(a) Saving facilities
Members are afforded with the opportunity
to save funds on monthly basis for utilization in
future. Members are encouraged to accelerate their
monthly savings to improve the total savings. Members
are motivated to save through highest savers awards
both at national and provincial levels.
(b) Loan Services
(i) Loans for
Development.
Loans for development are granted
at three times the members savings and are repayable
in 36 months. The processing period for development
loans is one month.
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(ii) Instant
Loans.
The eligibility to instant loans
is similar to that of development
loans, however instant loans matures within one week
after
submission of application forms at Head Office.
(iii) Emergency/School fees
loans.
Emergency/School fees loans are granted
according to the request
where the member has no outstanding loans.
(iv) Special Advances for loans clearance by
cash -See FOSA services.
(c) Afya benevolent fund (ABF)
The contribution of one hundred shillings
by members towards the ABF programme ensures that
members savings and loans are insured in event of
death.
Refunds of shares against deceased
members are doubled while outstanding loans are written
off through the ABF programme. The fund subsidises
funeral expenses by contributing Kshs. 15,000/=, 10,000/=
and 5,000/= in event of death of a member, spouse
and child respectively. On resignation a member is
refunded 50% of their total ABF contributions to build
their savings.
(D) Investments for members jointly
with Society/ branch group ventures
The Society encourages the members
to invest surplus funds viably. Members invested jointly
with the Society in Afya Co-operative Investments.
The Society facilitates the members to invest in Branch
Group ventures whereby members identify projects at
the Local levels and acquire them.
(E) Over the
counter trading services
The OTC facility enables members to
trade in the shares they own in the Investments/Holding
Co-operatives freely on willing buyers/willing sellers
basis.
(F) Front office
service activity (FOSA)
FOSA facilities offers services similar
to those offered by Commercial Banks _ See FOSS services.
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(G) Decentralised
Services
The Society decentralized various
services to the Branch level. By bringing services
at the members door steps; members are able to conveniently,
access emergency loans, ABF funds and FOSA services.
(H) Customer
care desk
Customer care Desk has been established
at the Society’s Head Office to facilitate prompt
services to customers who visit the Society. With
the launch of the customer care desk customers will
access all services at one spot.
(I)
Savings mobilization
This encourages members to continually save their money
with the Society, as it’s the Society’s
main source of funding. The saving is done through monthly
contributions of not less than Kshs 500/= BENEFITS
OF SAVINGS TO MEMBERS
- The more the savings the higher
the dividends
- High savings means a higher value
of loans one can acquire.
- Security for future economic needs
(J) Lending
The core business is to lend to members at affordable
rates. The Society has tailored different loans to
suit its members. The interest rate for the loans
is 1% per month on a reducing balance. A member must
have completed six months before being eligible for
any loan.
| 1. Capital
Loan: |
This loan is
granted for development expenditure such as
buying plots, house building, and business capital
amongst others.
- Repayment period is 36 (thirty
six) months
- The loan amount is calculated
at 2 to 3 times the member’s savings
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| 2. Emergency Loan:
|
This loan is granted to cater
for unforeseen circumstances such as sudden
hospitalization, funeral expenses, fire, theft
and such similar hazards.
- Repayment period is 12 (twelve)
months
- The loan amount is calculated
as 2 times (2x) the member savings
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| 3. School fees loan: |
This loan is granted to cater
for school fees. The period of issuing this
loan is during the months of December to March
which is considered a school fees period.
- Repayment period is 12 (twelve)
months
- The loan amount is calculated
as 2 times (2x) the member savings.
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4. Instant Loan: |
This is granted to members
who require immediate financing at short notice.
Hence a higher interest at the rate of 1.75%
is charged for this on a reducing balance.
- Repayment period is 24 to
36 (twenty four to thirty six) months
- The loan amount is calculated
as 2 times (2x) the member savings
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