|Product Features||Product Description|
|Product Brand Name||KYAPS Amiizi Supper Loan Product|
|Product Purpose||To provide reliable water for agriculture and human Consumption. The loans would be used to buy a variety of water products including construction of tanks, shallow wells, dams and buying irrigation materials and other materials for water harnessing.|
|Product Objectives||To increase the incomes of the members;
To improve hygiene standards in the homes of clients;
To reduce water borne diseases;
To reduce the burden of fetching water from distant places; a core performed by children and women especially during droughts;
To reduce domestic violence;
To provide water for irrigation
|Summary of Product Description
|Individual loans booked and managed by Clients with an income generating activity
Group and institutional loans to be provided.
|Types of Clients||Since the water provision might not be income generating. Loans will be extended to all clients engaged in the following activities:
– Service industry
|Client Eligibility Requirements
|– 18-70 years
– Resident of the area for at least 2 years;
– Fully paid up member of KYAPS
– Good loan repayment and Savings track record
|Repayment Capacity Requirements||– 40% of monthly net income|
|Repayment Source requirements||– Other household income|
|Client served by
|– Credit officer|
|Client Assignment||Operational zones|
|Clients per Loan Officer||250 – 350 clients|
|Reporting Requirements||Weekly and monthly performance reports|
|Client Verification prior and during loan term||– Business and homestead Inspection
– Cash flow analysis
– Assessment of other his/her needs for money
– Credit history
– Monitoring the business for clients
– Recovery reporting
|Inspection||– Business inspection costs met by the SACCO
– Client monitoring / business at least twice during loan term
|Loan Information requirements for approval||– Letter of recommendation from LC Chairman
– Passport Photographs for the Client and spouse
– Letter of undertaking from the Guarantor
– National Identification Card
|Conditions for approval||– Minimum of five shares and Shares to loan ratio 14%
Of the amount to be borrowed;
– Filling of Loan Application form
– Have an account with the SACCO
– At least two guarantors
– Completion of other loans (if any) and if deemed necessary.
|Loan Size||– Ushs. 50,000 to 30,000,000 for individual;
– UShs. 100,000 to 50 million groups and institutions
|Loan Processing Period||– Maximum of one week|
|Loan Instalments||– Not more than 40% of monthly Net Income|
|Loan term||– 6-24 Months,|
|Repayment/mode||– Monthly for individuals,
– Termly / per semester for schools and institutions;
– It can also be set according to the cash flows of the client.
|Collateral||– A fixed asset which may be one of these; Land, Kibanja (plantations), Permanent Commercial or Residential Building (but not matrimonial home)
– Chattels with receipts;
– Vehicle/Motor Cycle Original Log books
|Guarantees||– Should have good financial status
– Two members of the SACCO can guarantee
– Should not have guaranteed a defaulter
|– Land Titles
– Purchase Agreements for Kibanja with LC Letter confirming ownership.
– Letter of undertaking by Guarantors
– LC letter confirming ownership
|Interest Rate||– 2 to 2.5 % per month|
|Interest rate calculation||– Declining|
|Penalty Interest||– Loan diversion Refund the loan within two months
– Loan default 7% of the interest charged on the instalment outstanding;
|Loan application fees||– Will be charged according to the amount of loan advanced as per KYAPS categories.|
Loan commitment fee
|– 2% on Loan Amount Approved and paid upfront|
|Disbursement method||– By transfer to the clients account with the SACCO|
|Disbursed by:||– Branch Manager/ Authorised officer.|
|Loan renewal||– On completion of previous loan.
– Also concurrent loans acceptable depending on the types
|Incentives to good clients||– Quick access to other loan products
– Progressive loans to the client
– Reduction of interest rate
|Rescheduling and refinancing||– Done by relevant committees as per the approval limits.|
|Loan documentation||– Loan application Form
– Loan agreements
– Letters of undertaking by Guarantors
– Letters of Recommendation from LCs
– Repayment Schedule
– Spousal consent if applicable
– Acknowledgement of receipt
|Promotion||– Radio / Television Programmes;
– Brochures and flyers;
– By word of mouth;
– Launch the Amiizi Super loan Product;
– Short messages (SMS);
– Making a website for the SACCO;
– Using the product colour (Blue and white)
– Using product slogan Amiizi Super Loan
AMIIZI SUPER LOAN PRODUCT
- To increase the incomes of the members;
- To improve hygiene standards in the homes of clients;
- To reduce water borne diseases;
- To reduce the on burden of fetching water from distant places; a core performed by children and women especially during droughts.
- To reduce domestic violence.
- To provide water for irrigation.
- An applicant should be a member of KYAPS.
- Filling of Loan Application form.
- Minimum of five shares.
- Can be run alongside another loan.
- 50,000 to 30,000,000 for individual;
- 100,000 to 50 million for groups and institutions
- Loan repayment can be monthly, quarterly, termly / per semester basing on the cash flows for the applicant.
- Three Guarantors including the spouse of the applicant if applicable should fill the forms.
- The product will be offered to clients with income generating activities.
- Loan period will be 6-24 Months.
- Collateral security may be titled land, Kibanja, Permanent Commercial or Residential Building (but not matrimonial home), Chattels with receipts, Vehicle/Motor Cycle Original Log books.
- The applicant and the guarantors should have good financial records if any.
- The product will be offered at interest rates ranging from 2 to 2.5 % per month at reducing balance method.
- For new members who would want a flat rate of interest will access the product at 2% per month but purchase 4% of the loan amount as shares and have a compulsory saving of 10% of the loan during the agreed loan period.