This Loan enables members to sponsor their children and themselves for primary, secondary, college and university education. This loan product shall be available for even beneficiaries of other loan products. This means that a loan client can be allowed to benefit concurrently from more than one loan product except for Window 2 loan product.
Normal/development loans are granted several times member's shares/deposits. They are charged an affordable Interest per month on reducing balance. The maximum loan a member can get is Ushs.
Top-Up Loan
This is a product in the form of a top-up loan that is available for those members with loan balances who wish to get normal loans. Members are allowed to request for this loan and a commission which is charged on total outstanding loans. This loan is treated as a normal loan and therefore all applications should be received on or before end of every month. Authority for deduction of interest rate on early redemption should be made in writing. The interest rate on early redemption and the balance of the loan is reduced from the new loan.
Ordinary Loan after Cash Payment
Members who wish to clear their outstanding normal loans by cash and get new normal loan without having to wait for the stipulated period of three months, will be required to pay a commission on outstanding normal loan balance in cash or be deducted from the loan approved.
Window 2 Loans(Emergency Loans)
These include in-patient treatment, court fines, civil cases and other unforeseen emergencies. Maximum loan to be granted is dictated by ability to repay and subject to the 1/3 rule and the shares/deposits limit. The loan is Repayable within few months. No documentary evidence is required for emergency loans.
