Baptist SACCO Loan Terms & Conditions

I understand that the Lending Policy is the guideline for this application

Basic Loan Rules

  1. Members must have been active contributors for a minimum period of six (6) consecutive months with minimum deposits of Kshs 100,000.
  2. Lump sum contributions for loan qualification must remain deposited for at least three (3) months prior to application and throughout loan tenure.
  3. Guarantors must:
    • Be active SACCO members for at least 1 year
    • Have savings balance exceeding the guaranteed amount by 25%
    • Not be guarantors for more than 3 active loans simultaneously
  4. Loan approval is subject to:
    • Creditworthiness assessment
    • Debt-to-income ratio below 40%
    • Clearance from SACCO's credit committee
  5. The Management Committee reserves the right to:
    • Request additional collateral
    • Adjust approved loan amounts
    • Impose special conditions based on risk assessment

Default Consequences

  1. Defaulting for more than 30 days will:
    • Trigger immediate recall of the full loan balance
    • Incur a penalty charge of 5% per month on arrears
    • Lead to automatic deduction from guarantors' accounts
    • Result in listing with credit reference bureaus
  2. Recovery costs including legal fees will be borne by the borrower.
  3. Persistent default may lead to membership suspension.

Applicant's Declaration

  1. Accuracy of Information: I confirm all provided information is truthful and complete.
  2. Data Consent: I authorize the SACCO to:
    • Verify my information with third parties including CRB
    • Process my personal data for loan administration
    • Share my loan performance data with credit bureaus
    • Use my contact details for loan-related communication
  3. Deduction Authorization: I irrevocably authorize salary/account deductions for repayments.
  4. Policy Compliance: I agree to abide by all SACCO policies including:
    • Lending policy amendments
    • Interest rate changes
    • Repayment schedule modifications
  5. Update Obligation: I will notify the SACCO within 7 days of any:
    • Change in employment status
    • Change in contact details
    • Financial circumstances affecting repayment ability

Data Protection Notice

We process your personal data in accordance with the Data Protection Act 2019. Our Privacy Policy details:

By submitting this application, I confirm:

  1. I have read and understood all terms
  2. I accept the financial obligations
  3. I consent to data processing as described
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