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
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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:
– Trade – Service industry – Agribusiness |
Client Eligibility Requirements
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– 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 |
Loan Servicing |
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Client served by
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– Credit officer |
Client Assignment | Operational zones |
Clients per Loan Officer | 250 – 350 clients |
Reporting Requirements | Weekly and monthly performance reports |
Controls |
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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 Approval |
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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, |
Grace Period | None |
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. |
Loan Security |
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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 |
Security Requirements
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– Land Titles
– Purchase Agreements for Kibanja with LC Letter confirming ownership. – Letter of undertaking by Guarantors – LC letter confirming ownership |
Rates |
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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 |
Loan Disbursement |
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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
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 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.
Features
- 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.