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Micro Finance Loan

These are small loans given to organised groups to invest in income generating activities which can be financed with limited risks: horticulture, small businesses, and dairy after some cycles.

Terms and conditions

  1. The product targets Women / Men not salaried who are involved in vegetable and farming production and / or small business and income generating activities, who are members of existing groups, good citizens aged over 18 years in possession of national identification card.
  2. Group size shall be between 10 and 30 members.
  3. The group shall be the borrower and group guarantee shall be used, where group members guarantee one another.
  4. Loan duration shall be 3, 6 or 9 months for cycle 1 to 3 and 12 months for cycles 4 and above. Dual duration inside the same group shall be allowed for groups that are cycle 2 and above.
  5. Applicants shall deposit 15% of the loan amount granted upfront as collateral to guarantee the loan.
  6. Applicants shall deposit upfront 2% of the loan amount as mf shares contribution.
  7. Applicants shall deposit upfront 1% of the loan amount as insurance to cover outstanding loan balance incase of death happenings for the borrower.
  8. Minimum loan amount shall be 3, 000 shillings and Maximum 100,000 shillings depending on the level of the loan, but adjusted for inflation every year at the prevailing rate.
  9. Repeat loans for the group based on the group repayment record of the previous cycle, and the evaluation of the leadership and organization of the group and members.
  10. Advance and partial repayment are not accepted.
  11. Late repayment penalty total amount of the instalments in arrears cumulatively shall be applied to the group and not to the individual members and it shall cease 4 months after the first default.

Physical Address: Kahawa House, Opp. Gudka Westend, along the Kisii-Sotik Rd ,Overlooking Daraja Moja
Tel: 058 30220,058 30221, Mobile: 0736 856060 , Fax: 30219 , E-mail: wpsacco@wakenyapamojasacco.com

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