New terms and conditions for loans set by Mwalimu Sacco

The Mwalimu National Sacco is one of the largest Sacco in Africa with members from teachers throughout Kenya.The Mwalimu National Sacco bring changes in lending policy.

The Sacco aims to enable teachers access affordable financial services and benefits.

Mwalimu National Sacco enjoys membership from the teachers fraternity from all parts of the country.

Pursuant to the Mwalimu National Sacco’s corporate society on business growth, the board of directors of the Teacher’s giant had approved several changes in the loan policy that will affect its customers.

Following the meeting held on 27 August 2022, the Board of Directors of Mwalimu National Sacco approved several amendments to the interventions on the loan policy of the FOSA. The changes include:

1. 1.Ufanisi Loan

The board of management has agreed to adjust the deposit multiplier from four times to five times. On the other hand, the loan duration has been adjusted from 72 months to 120 months. In this category, other requirements remain constant post-amendment.

2. Normal Loan

The duration of Mwalimu’s national loan has been extended from 36 months to 48 months.

3. Development Loan

According to the new adjustment, loan duration has been adjusted from 48 months to 60 months.

4. Waiver of commercial bank loan payoff

Members who wish to offset their commercial bank loans can do so by offering a waiver of 5% commission charged on the commercial bank bay-off loan. The waiver deadline has been extended to 31st December 2022.

5. Suspension of Pro-rata factor.

The sacco has suspended pro-rata factor until 31st December 2022. This applies to ONLY new loan applications with the minimum monthly deposit contribution of sh 2000 in the interim basis.

The Sacco Board of Directors has agreed that all of the above changes will take effect on September 1, 2022, with the intent of increasing credit.

“Our focus is to provide opportunities for accessing credit to the general SACCO membership as we seek to re-engineer the Sacco brand”, Mwalimu National Sacco CEO Keneth Ondhiambo said.