Micro-credit products
Micro-credit Products
MC loans are given to small-scale economically active low-income groups and business people. Such loans shall be secured by Co-guarantor ship and the group members shall have a common bond (interest) and must have income generating projects. Micro-credit shall operate independently from all activities of FOSA and BOSA. However, MC affairs shall be dealt with by the investment/micro credit Committee of the SACCO.
Requirements
Areas of Funding
Requirements
- Open a business account at FOSA.
- The individual/group will be required to make regular deposits to the FOSA account, (weekly, fortnightly or monthly).
- After two months of savings, the member/group will be eligible for a loan.
Areas of Funding
- Expansion of business (Retail, Wholesale, Supermarket, Petrol Station, Hotel, Salon, Barber Shop, etc).
- Ufugaji (Buying of domestic animalys)
- Agriculture.
Biashara Loan
- Maximum repayment period is 3 months.
- Maximum amount is 80% of Net Salary.
- Salary must have been processed through Fosa at least once
- Interest is 2.5% p.m. on outstanding balance.
Ufugaji Loan
- Minimum operating balance is 500
- No monthly charges
- Account holder can borrow advance for upto 6 months depending on the account transactions
- Account holder can make monthly contributions through check–off system
Kilimo Loan
- Account for members’ children who are 18 years and below.
- The account will be in the name of the child/children but operated by the Member.
- No ATM service on this account.
- Free school fees cheque issued
- Low minimum opening balance