Loan Eligibility
In order to get timely credit, you must meet the credit criteria that have been set by the Sacco as below:
Character
Character is the most comprehensive aspect of the evaluation of creditworthiness.
- Your credit report is a reflection of whether or not you have good credit character.
- There should be no History of default.
- Good financial credit character is displayed by someone who meets her/his financial obligations on time.
- Even if you are sure that you are doing so, it is a prudent practice to check your CRB report frequently to see whether everything is in order and your financial obligations appear as they exist in your credit report.
- Suppose you are listed, clear with CRB and present your clearance certificate upon submission of your application.
Capacity
- When you make your loan application, the Sacco will ask you to submit a whole lot of income related documents such as your salary slips. This is to evaluate whether you have adequate capacity or the ability to make a timely repayment of the loan.
- A member’s capacity to repay the loan is a necessary factor for determining the risk exposure for the Sacco. A member’s income amount, history of employment, and current job stability indicate the ability to repay a loan
Collateral
Collateral can be inform of guarantor ship or other forms of acceptable collateral.
For loans secured by other members, they must be in good standing (no default history, and loans guaranteed must not be in default.)
If you own any property, this can be used as collateral for a loan. In case you cannot make your debt repayments, your collateral will then go under the possession of the Sacco which will sell it off to repay your loan
Capital
Capital represents the member’s overall pool of assets. It represents one’s investments, savings, and assets such as land.While assessing your loan eligibility, the Sacco will also look at your capital or the amount you have left after you have met your debt obligations.The lender needs to be assured that you have enough capital to fall back on to be able to handle new credit.
cash flow
How much of your income is left once you meet your other debt obligations and paying off your bills? This portion of your income stream will qualify as your cash flow, and the lender needs to be assured that you have enough of it before approving your loan.
Conditions:
In order to assess your loan eligibility, the Sacco will also scrutinize various conditions that affect the member. For instance, Principle amount + interest. Information on how the member plans to use the loan. External factors like calamities and state of the economy, industry – specific legislation and political changes impacting on business
For members in employment, stability of your employment is paramount.
How to determine what loan to borrow?
- How much do you need to borrow?
- How long do you anticipate will take for you to pay back?
- Your monthly income and other credit repayments.
- Urgency of the loan.
- Security Availability
- Property Conveyancing
- Environmental Law
- Corporate Law
- Insurance
- Intellectual Property
- Litigation
- Employment & Labour Law
Shamba Loan
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