Loans
Affordable credit, priced on a reducing balance
Borrow up to 3 times your deposits — up to 5 times for micro-credit — and pay interest only on what you still owe.
- Your deposits, for most loan categories
- 3×Your deposits, for most loan categories
- Per month, on a reducing balance
- 1.25–1.5%Per month, on a reducing balance
- Maximum repayment period
- 36 monthsMaximum repayment period
- Of regular saving before your first loan
- 6 monthsOf regular saving before your first loan
Loan products
A loan for every purpose
All Wakarimu loans are charged on a reducing balance. Confirm the rate applicable to your category at the time of application.
Normal / Development Loan
Reducing balanceThe general-purpose loan for land, building, home improvement and long-term personal projects.
- Limit
- Up to 3× your deposits
- Repayment
- Up to 36 months
- University and college fee loans are treated as normal development loans
- Requires member guarantors
Emergency Loan
Reducing balanceFor urgent, unforeseen needs such as medical bills, funerals and other genuine emergencies.
- Limit
- Up to 3× your deposits
- Repayment
- 12 months or less
- Processed as applications come in, without waiting for the normal cycle
- Supporting evidence of the emergency is required
School Fees Loan
Reducing balanceFor primary and secondary school fees, processed in line with the school calendar.
- Limit
- Up to 3× your deposits
- Repayment
- Within the same calendar year
- Processed as per the school calendar
- Fee structure or admission letter required
Express Loan
Reducing balanceA fast, salary-based advance for members in formal employment who need money quickly.
- Limit
- Based on net salary
- Repayment
- Within the calendar year granted
- Salary-based applicants only
- A recent payslip must be attached
Business Loan
Reducing balanceWorking capital and expansion finance for traders, shopkeepers and other businesses.
- Limit
- Up to 3× your deposits
- Repayment
- Up to 36 months
- A forecast cash flow covering at least six months must be submitted
- Members in non-formal employment attach three months of business statements
Product / Asset Loan
Reducing balanceAsset financing for equipment, stock, farm inputs and other productive purchases.
- Limit
- Up to 3× your deposits
- Repayment
- Up to 36 months
- The asset financed may be held as security
- Quotations or invoices should accompany the application
Micro-Credit Loan
Reducing balanceSmaller, faster credit for members building a savings record and growing micro-enterprises.
- Limit
- Up to 5× your deposits
- Repayment
- Short term
- Carries the highest multiplier of any Wakarimu product
- Assessed on savings consistency and repayment history
Group / Chama Loan
Reducing balanceCredit advanced to registered groups, chamas and welfare associations saving together.
- Limit
- Up to 3× group deposits
- Repayment
- Up to 36 months
- Group officials complete the group section of the loan form
- Group resolution and registration certificate required
Refinancing Loan
Reducing balanceAn additional advance on top of a running normal loan, for members who qualify.
- Limit
- Subject to entitlement
- Repayment
- Within the initial loan's repayment period
- Repaid inside the original loan's repayment period
- Your existing balance is taken into account
Lending rules
The rules every application is measured against
These are the rules printed on Part One of the Member Loan Application Form. Reading them before you apply saves time for you and for your guarantors.
Members must have been regular savers for at least the six months preceding their first loan application.
Complete applications must be on the original form only. A copy of your ID and relevant supporting documents, including a recent payslip, must be attached. Members in non-formal employment must submit a business financial statement for the previous three months.
All members applying for business loans are required to submit a forecast cash flow for at least six months.
Members shall have only one loan of each category at any given time.
Total loans granted shall not exceed three times a member's deposits, and in any case not more than 5% of the society's capital and its liquidity, repayable over a period not exceeding three years. Members should confirm the lending rate applicable to their loan category at the time of application.
Loan guarantors must be members, and must be witnessed when signing the guarantor section.
The amount applied for should be equal to or less than the loanee's plus guarantors' deposits (LGSA).
School fees loans must be repaid within one calendar year.
University and college fee loans are treated as normal development loans.
Express loans (salary based only) must also be repaid within the calendar year in which the loan is granted.
Refinancing (additional) loans shall be repaid within the initial normal loan repayment period.
The Sacco's minimum deposit contribution per month, without loan servicing, is KES 1,000 plus insurance cover. Minimum contributions with loan servicing are set out in the table below.
Emergency loans are processed as they come and are repayable within 12 months or less.
School loans are processed as per the school calendar and are repayable within the calendar year.
A member who boosts deposits outside the regular contribution shall wait six months before the amount is considered for loan eligibility calculation.
A member who clears a loan by cash shall have a two-month lapse before applying for a new loan.
A member who has not remitted the minimum monthly contributions in the last three months shall not qualify for a loan until the respective account is fully updated.
Any collateral submitted, unless transferred to the Sacco, shall only signify the good standing character of the loanee.
Rule 12
Minimum contribution while servicing a loan
Once you are repaying a loan, your minimum monthly contribution rises with the size of the loan you hold.
Without a loan running, the minimum contribution stays at KES 1,000 a month plus insurance cover.
| Loan amount | Minimum monthly contribution |
|---|---|
| KES 50,000 and below | KES 1,100 |
| KES 50,001 – 70,000 | KES 1,200 |
| KES 70,001 – 90,000 | KES 1,300 |
| KES 90,001 – 100,000 | KES 1,400 |
| KES 100,001 – 120,000 | KES 1,500 |
| KES 120,001 – 140,000 | KES 1,600 |
| KES 140,001 – 160,000 | KES 1,700 |
| KES 160,001 – 180,000 | KES 1,800 |
| KES 180,001 – 200,000 | KES 1,900 |
| KES 200,001 – 300,000 | KES 2,000 |
| KES 300,001 – 400,000 | KES 2,100 |
| KES 400,001 – 500,000 | KES 3,100 |
| KES 500,001 – 600,000 | KES 4,100 |
| KES 600,001 – 700,000 | KES 5,100 |
| KES 700,001 – 800,000 | KES 6,100 |
| KES 800,001 – 1,000,000 | KES 8,100 |
The process
How your application is handled
Every loan passes through the same checks, so that members' money is lent carefully and fairly.
Application received
You submit the original completed form with your ID copy, payslip or business statements, and your guarantors' witnessed signatures.
Registry
The registry confirms your membership standing and that your file and contributions are up to date.
Accounts
Accounts verify your deposits, share capital, existing loan balances and guarantors' available security.
Appraisal
Your entitlement is calculated from your deposits, and your repayment capacity is tested against your net income.
Credit / Loans Committee
The committee reviews the appraisal and recommends the amount, rate and repayment period.
Executive Committee
The executive committee gives final approval on the recommended terms.
Disbursement
The cheque or transfer is dispatched to you, and your repayment schedule begins.
Internal audit
Internal audit and the supervisory committee independently verify that the loan was properly granted.
Ready to apply?
Work out your repayment before you fill in the form
Our calculator uses the same reducing-balance method the Sacco applies, so you can see the monthly repayment and total interest up front.