Short-Term/Personal Loans Guide - Terms & Conditions

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Short-Term/Personal Loans Guide - Terms & Conditions

Purpose of the loan: 1. Emergencies e.g. salary advance, sickness, funerals etc., 2. Holiday Loan e.g. air ticket and accommodation expenses 3. Schools Fees for self and family members 4. Investment in Shares/stocks listed in the NSE 5. Any other as you may define

Target Market: 1. Salaried Persons 2. Contract Persons 3. Self-Employed Persons

A. LOAN RATIOS

The Bank will finance up to a maximum of 100% of the loan amount. The member is entitled to a maximum of four short-term loans at any one time. The member should have 20% of the loan facility as savings with the Sacco to qualify for the loan.

B. LOAN AMOUNT

Minimum loan ? KES 300,000.00 ? three hundred thousand. Subject to repayment ability. Maximum loan ? Five times (x5) the member's contribution in the Main Savings Account of the Sacco.

C. LOAN PERIOD

1) Emergencies

12 Months

2) Holiday Loan

24 Months

3) Schools Fees

36 Months

4) Investment in Shares/Stocks 60 Months

No penalty charged for repaying the loan faster.

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D. SOURCE OF REPAYMENT

? Salary Income ? Business Income ? Rental Income

NB: Where source of repayment is rental income, customer to provide: 1. Tenancy Agreements for rented property (ies) or rental assessment by an approved valuer. 2. Copies of title deeds of the rented properties for confirmation of ownership. 3. Bank statements for latest 12 months where rent is channeled.

E. STANDARD BORROWERS MINIMUM REQUIREMENTS

Sacco Member to complete the KCB/ KENYA USA Diaspora Sacco loan application form and attach/return with the following documents to the Sacco office in Atlanta, Georgia, USA.

EMPLOYED PERSONS: 1. Pay-stubs for the latest 3 months (Notarized) 2. Letter from employer confirming employment status (Notarized) 3. Bank statements for the latest 6 months (Notarized) 4. Copy of Kenya ID or Kenya valid Passport 5. KRA PIN Certificate 6. Copy of the latest W2 Form issued by the employer 7. Open a Bank account with KCB 8. Two passport size photographs 9. If married - spousal Consent form or Sworn Affidavit witnessed by a notary public 10. If single - sworn affidavit witnessed by a notary public 11. Security - Member's Shares in the Sacco 12. Security - Copy of the title document of a developed property acceptable by the Bank (Minimum lease term 35 years)

SELF-EMPLOYED/CONTRACT PERSONS:

1. Bank statements for the latest 12 months (Notarized) 2. Copy of Kenya ID or Kenya valid Passport 3. KRA PIN certificate 4. Open a KCB Bank account 5. Two passport size photographs 6. Business registration certificate 7. IRS Business Tax Returns for the latest filing year 8. If married - spousal Consent form or Sworn Affidavit witnessed by a notary public 9. If single - sworn affidavit witnessed by a notary public 10. Security - Member's Shares in the Sacco 11. Security - Copy of the title document of a developed property acceptable by the Bank

(Minimum lease term 35 years) 12. 1099 Forms and/or any other supporting documents.

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F. SHORT-TERM LOANS RELATED COSTS

The following loan costs, which constitute about 7% - 8% are borne by the member: 1. Internal Costs (payable to KCB)

No. Item

Fees

1. Ledger Fees KES 250.00 or USD 3.00 per month

2. Interest rate ? USD Loan - 8% fixed for the entire term of the loan.

Charged on a reducing balance.

? KES Loan - 15% fixed for the entire term of the loan.

Charged on a reducing balance.

3. Appraisal Fees ? 2% of loan amount

2. Internal Costs (payable to Kenya USA Diaspora Sacco)

No. Item

Fees

1 Loan application handling fee USD 100

3. External Costs (payable to approved Valuer/Lawyer/Insurance Company/ Kenya Government)

No. Item 1. Valuation Fees

Fees

First KES 2M at 1% Residue at 0.25% Add: Disbursements and 16% VAT

Remarks

Payable to valuer in the approved bank's panel for carrying out a valuation of the property being charged.

2. Legal Fees 3. Insurances:

1.0% ? 2.0% of the loan amount

Payable to the approved Bank lawyer for preparation of charge document on behalf of the Bank.

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i. Mortgage Protection Insurance (MPI

0.42% of loan amount (I PERSON @ 0.42%)

At the release of funds the premium is paid in full or prorated. Thereafter on a monthly basis and is included in the loan repayment.

? The benefit of the insurance is that in the event of death of the borrower, the loan outstanding will be paid in full.

? In the event of total disability of the loanee the loan outstanding will also be repaid in full.

General Information:

1. The property offered as security must have a minimum lease period of 35 years

2. The SACCO shall vet and evaluate the loan applicants, ensure the application forms have been filled out correctly, and that all required documents are attached and then submit the forms to KCB's office in Nairobi, Kenya.

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