Loan Application Procedures

  1. All applications to all types of loans shall be authorized by loan commitee.
  2. The Loan Commitee will approve a loan after agreeing with terms that prove and guarantee security of society funds to be issued as loans.
  3. The loan committee will sort and ensure security of all loans according to terms and conditions before approving and handing over to Manager / Treasurer for preparing payments based on decisions made by loan committee.
  4. Final decissions whether to accept or reject a loan application will be done under authority given to loan committee, and will give a report to the next meeting of loan committee members.
  5. A member can appeal his/her rejected loan application to the Chairman of Loans Committee. The Chairman in consultation with the members of the loans committee will give a final decission.
  6. Loans will be reviewed by member of the loans commitee twice every month. Variations are possible whenever necessary by suggestions from General Secretary or Manager and by approval of members of the loans commitee. kamati ya mikopo.
  7. Utaratibu utakaotumika katika utoaji wa mikopo ni aliyeomba kwanza kupewa kwanza (FIRST COME FIRST SERVED BASIS).
  8. A member will apply for a loan by filling an application form based on needs and instructions contained in the form.

Approving and Accepting Loan Applications

  1. Loans will be issued to members who have fullfilled conditions for loans.
  2. Amount of loan shall not exceed three(3) times the member balance
  3. Loan payback period starts from six(6) months to thirty six(36) to maintain a good cash flow  and depending on the type of loan.
  4. Preliminary stages of the loan application will be handled by loans officer ar accountant before handing over to loan commitee for discussion and approval.
  5. All loan applications will be made via the special form and for each application should outline;.
    • Amount of loan requested.
    • Purpose of the loan
    • The remaining payback period with previous loans.
    • Loan guarantors/collateral
    • Balance deductions from monthly salary
  6. A member has the right to take a loan not greater than three(3) times his/her balance or according to needs and capability to pay.
  7. Loans will be approved by loan committee once a month for development loans on a basis of first come first served.
  8. Interest amount will be charged every month by deducting from the loan balance.
  9. As soon as a loan is approced, a loan agreement will be signed outlining the loan repayment schedule, interest charged, loan repayment period or a repayment start date which will be instructed. Afterwards, loan in cash or check will be handed to the member.
  10. The board shall, every year nominate members to the loan committee to enable rotation of members so that all Board members can participate in the loan committee.