DEVELOPMENT LOANS
ASSET SECURITY LOAN
This is a loan property secured by collateral including land, buildings, motor vehicles and shares traded at the Nairobi Securities Exchange
Product features
- Maximum Amount: Kshs 7,000,000
- Minimum Amount: Kshs 1,000,000
- Repayment period: 60 months @ 1.25% on reducing balance or 72 months @ 1.5% on reducing balance
- Ability to pay: Pay slip within the 1/3 rule or other proven and acceptable sources of income.
- Deposits 3 times multiplier factor is also considered
- Valuation will be done by the Approved panel of valuers
- Chattels charge by the lawyer
- The cost of valuation and other charges are borne by the borrower
What assets are accepted as security?
- Motor vehicles- 8 years and below. Up to a maximum of 50% of the value
- Land and buildings – up to a maximum of 70%of the value
- AHDC title deeds- up to a maximum of 70% of the value
- NSE (stock) traded shares.
NB: Kindly note that the process of the facility takes 45 days.
CAR LOANS
This is a product that is designed to enable members acquire private motor vehicles while using the same assets as security for the financing. This product will be offered in partnership with reputable dealers of new and second hand imported cars
Product features
- Maximum Amount: Kshs 5,000,000 subject to ability to pay.
- Financing up to 80% of the value of motor vehicle
- Maximum tenure of 36 months
- Interest rate: Interest rate 1.5% per month on a reducing balance
- Security: loan secured by motor vehicle being acquired
- The motor vehicle should NOT be more than 10 years old from the date of manufacture
PROPERTY LOAN
Product features
- Enables you acquire assets and finance other development projects
- Maximum Amount – 3 times member’s savings
- Repayment period – 48 Months
- Interest – 1% p.m. on a reducing balance (6.5% p.a.)
- Loans security – guarantors or assets in member’s ownership.
NORMAL LOAN
Product features
- Enables you acquire assets and finance other development projects
- Maximum Amount – 3 times member’s savings
- Maximum period – 60 Months
- Interest charged – 1% p.m. on a reducing balance (6.5% p.a.)
- Loans security – guarantors or assets in member’s ownership.
SHAMBA LOAN (FOR AHDC* PLOTS ONLY)
Product features
- Not tied to members deposit
- Proof of ability to repay
- Interest rate is 1.5 % per month on a reducing balance
- Maximum repayment period: 48 months
- No guarantors required but AHDC title deed will act as Security
- Cheques payable to AHDC
Target group
- New members who have recently joined the Sacco
- New members who have not accumulated enough deposits.
- Old members whom have exhausted their 3 times deposit requirement but have ability to repay.
RE-FINANCING LOAN
Product features
- An addition to the normal loan
- Maximum amount :- Ksh 1 Million
- Interest rate:- 1% p.m. on a reducing balance (6.5% p.a)
- Repayment period:- period remaining from the time the original normal loan was granted
- Normal loans can only be refinanced twice during their lifetime
BRIDGING FINANCE
Product features
- Bridging finance is applicable to normal and property loans
- Members will be allowed to clear all the other existing loans at the time of bridging.
- Maximum limit – 3 times member’s savings
- Must have repaid the loan for at least half its life or half of the principal amount.
- A 5% fee will be charged on the bridged amount the bridged amount shall be recovered in full from the proceed of the new loan
DEPOSIT BOOSTING LOAN
The deposit boosting loan is aimed at increasing a member’s deposit in order to qualify for a loan. The features of this loan are as follows:
- Maximum boosting amount: 50% of member’s current deposits.
- Application for deposit boosting must be accompanied by a loan application for any loan facility within AMREF SACCO with the exception of Instant Pesa, salary advance and motor vehicle insurance financing.
- The boosted amount will be charged 5 % one off and recovered in full when paying out the new normal loan.
- The boosted deposit will earn interest on deposit at the end of the year
