Who Is Eligible?
- A fully registered member of Kenya Police Sacco owning a business.
- Any registered group where everybody is an active member of Kenya Police Sacco. The group should have an income generating activity.
Requirements
- Open a business at FOSA.
- The individual/group will be required to make regular deposits to the FOSA account, (weekly, fortnightly or monthly).
- After two months of savings, the member/group will be eligible for a loan.
Areas of Funding
- Expansion of business (Retail, Wholesale, Supermarket, Petrol Station, Hotel, Salon, Barber Shop, etc).
- Housing (Commercial Houses) and Purchasing of land (mainly for groups).
- Transport Business & Commercial Vehicles.
- Agriculture.
FEATURES
Enterprise/Business Loans:
- Interest Rate: 1.25% per month (15% per annum).
- Repayment Period: 24 months (Factor: 20.03).
- Qualifying Amount: 4 times savings in business account.
- Insurance: Covered under UBF.
- Security: Title Deed/Log Book.
Commercial Houses Loans/Land Purchase:
- Interest Rate: 1.25% per month (15% per annum).
- Repayment Period: 48 months (Factor: 34.04).
- Qualifying Amount: 4 times savings in business account.
- Insurance: Covered under UBF.
- Security: Title Deed/Log Book.
Transport Business/Commercial Vehicles:
- Interest Rate: 1.25% per month (15% per annum).
- Repayment Period: 36 months for transport business e.g Matatus (Factor: 27.66)
48 months for commercial vehicles e.g Tractors (Factor: 34.04). - Qualifying Amount: 4 times savings in business account.
- Insurance: Covered under UBF.
- Security: Title Deed/Log Book/Members Deposits for groups.
Purchase of Land (Group Loans):
- Interest Rate: 1.25% per month (15% per annum).
- Repayment Period: 48 months (Factor: 34.04).
- Qualifying Amount: 4 times savings in business account.
- Security: Title Deed/Members Deposits
Agriculture Loans:
- Interest Rate: 1.25% per month (15% per annum).
- Repayment Period: 12 months (Factor: 10.91).
- Qualifying Amount: 4 times savings in business account.
- Insurance: Covered under UBF.
- Security: Title Deed/Members Deposits.
Application Procedures
Member applies for a loan and attaches the security pledged (Title Deed or Log Book)
- Security handed to a valuer for searching and valuation.
- After valuation, charging of the documents is done by a lawyer.
- Loan is disbursed after (i) and (ii) have been done.
- Valuation and Charging fees are borne by the borrower.
Appraisal
- Business assessment done to confirm ownership and sustainability.
- Business records confirmed to ascertain the profitability of the business being funded.
- Amount eligible is four (4) times what one has in business.
- However, the actual amount depends on the ability of the business to service the loan.
- 60% business profit is factored as the eligibility amount of repayment.