Who is eligible to access Lainisha Sacco Credit Facilities?
When does a member become eligible for a loan?
A member becomes eligible after a minimum membership period of three months and on fulfilling all requirements of a specific loan product. Members who transfer their deposits from another Sacco are exempted from the waiting period.
How is a loan application made?
Does interest charged by the Sacco fluctuate during the term of the loan?
Who decides on what interest to charge?
Can a member use interest on non-withdrawable deposits to clear loans?
What are the acceptable Securities for a loan?
Who is eligible to be a guarantor?
Any active member in good standing is allowed to be a guarantor provided that one has not over guaranteed. A guarantor must be willing and able to repay the loan guaranteed if the loanees fails to pay.
What is the role of a guarantor?
What are the rights of a guarantor?
- The right to obtain a copy of the letter of guarantee or contract of guarantee and any other documents in relation to the loan transaction
- The right to the information on the outstanding balance of the account of the borrower with the Society subject to the borrowers consent
- The right to call upon the borrower to pay off the loan to release him from all his liabilities under the guarantee. This right can be exercised at anytime and even before the Society has called upon the borrower to pay the debt
- The right to be indemnified by the borrower for any payment made to the Society. This means that he can sue the borrower for the amount that he has paid to the Sacco
What does a borrower need to know about the loan he/she is guaranteeing?
- Loan amount
- Repayment period
- Applicant's source of income
- Applicant's term of employment
- Applicant's retirement date
- Applicant's contact details
- Any other details relating to the applicants character
What are the available disbursement channels?
Can one clear a loan in full before repayment is over?
Who is a nominee?
A nominee is the person designated by a member to receive the proceeds of any payable funds upon the death of the member. All members are required to provide details of nominee(s) upon registering as members, One can change and/or update his/her nominee information as when and need arises.
Can one alter loan repayment period during the repayment of the loan?
On loanees request the repayment period may be altered at any stage of repaying the loan provided that the request is within the limits of a particular loan term, and is endorsed by all guarantors, if extension.