Business Loans offered at Mwalimu National Sacco, Requirements

Mwalimu National Business Loans

Mwalimu national is one of the most instrumental SACCO in Kenya that has elevated the economic livelihood of its members. The SACCO draws most of its members from Teachers Service Commission-TSC employees and tutors in Tertiary institutions.

Read Also: List of Mwalimu National SACCO Branches 

One of the most recognizable product whose presence has made positive impacts in the lives of its members is Business Loans. Members are legible for two business loans, either individual loan or group loan.

Mwalimu National Loan Application requirements 

Here are the loan application requirements as stipulated by the sacco.

  1. Minimum monthly share contribution applicable after loan approval is a percentage of the loan depending on one’s deposit balance as follows:
  • Less than 300,000 is 0.9%
  • 300,001- 600,000 is 0.8%
  • 600,001 – 900,000 is 0.7%
  • Above 900,000 is 0.6%

2. Approved loans shall be paid through the FOSA account.

3. Members can qualify for all the above loan products at any given time provided that TOTAL OUTSTANDING LOANS SHALL NOT EXCEED SIX TIMES A MEMBER’S DEPOSITS subject to the 1/3 salary rule.

Now that you’ve known requirements for one to apply for loans, let us detailedly dissect what Individual and group loan entails.

Individual Loan

This is a unique opportunity offered to members with well established businesses. An individual client can access business loans directly without necessarily group requirements. The minimum loan for individual client is Kshs 501,000 and a maximum of Kshs 5,000,000.

  • Individual loans are offered at an interest rate of 1.25% p.m. on reducing balance.
  • Repayment period is between 3-36 months depending on the amount borrowed.
  • The loan is self-secured and acceptable securities include logbooks and commercial title deeds.

Group Loans

Group loans are purposefully meant to boost business. Once approved, Business Loans are disbursed to individual members within a group for expansion of existing income activity. For members to qualify for this facility, the business being run must have be in operation for at least six(6) months.

Mwalimu National SACCO Group Loans are based on three tiers (Tier one, Tier two and Tier three).

Tier Payable
One (KSH 30,000 – KSH 150,000)  In maximum 12months (1.33% p.m)
Two (KSH 151,000 – KSH 250,000) In maximum 24months.(1.33% p.m)
Three (KSH 251,000 – KSH 500,000) In maximum 36months(1.33% p.m)

 

Each tier attracts a monthly interest of 1.3% p.m. Its important to note that one has to start from tier one and graduate through the tiers within the program based on business ability.

An amazing thing about group loans offered is that if the business is successful, at tier three one can move to borrow as an individual client without the need of group.

Mwalimu National Sacco Contacts

To get more information concerning services and products offered by Mwalimu National SACCO use contacts below.

Hill Lane, Off – Mara Road, Upperhill
P.O. BOX, 62641 – 00200,
Nairobi, Kenya.

 

Email mwalimu@mwalimunational.coop
Phone 020 295 60000, 0709 898 000, Free SMS Line: 20156
Website  www.mwalimunational.coop