• Loan to value ratio (LTV): The maximum loan amount applicable is up to 90% of the construction cost or projected open market value upon completion whichever is lower. The member raises 10% proportion of the construction cost as a personal contribution to the project.
• Interest rate and mode of interest calculation: The mortgage Interest Rate is 8% p.a for loans paid in less than 10 years and 9% p.a for loans over 10 years. Interest rate is calculated on a reducing balance.
  A moratorium on principal payments is applicable during the project period. The borrower therefore only services interest on total funds disbursed into the project at any one given time until project completion. Interest during construction may be paid monthly as it falls due or upfront in full.
• Maximum loan term: For salaried members, the maximum loan term is up to 25 years (or 300 equal monthly instalments). An applicant qualifies for a loan term not exceeding the difference between their age and official retirement age of the employer or 25 years, whichever is shorter)
  For members from the informal sector (relying on business income), the maximum loan term is up to 15 years (or 180 equal monthly instalments).
  Maximum loan term in this category is therefore 15 years or the balance between the applicant’s age and the insurable age whichever is lower.
• Minimum/Maximum Re-financeable Loan Amount: Kes 500,000.00 – Kes 4,000,000.00
• Mortgage Protection Policy (MPP): The loan applicant is required to obtain an insurance policy to cover the loan amount against death or permanent total disability. This policy is known as Mortgage protection Policy. In the event of death or permanent total disability, the cover underwriter pays the remaining loan balance to the SACCO.
• Domestic Package Insurance Cover (DP).
  This is an insurance cover on the property itself against theft and fire. In case of fire destruction, the insurance will finance rehabilitation to the original state but capped at Insurance Value as determined by a Valuer in Harambee Sacco panel.
• Contractor’s All Risk Insurance Cover (CARIC)
  This is an insurance that covers the project during the construction phase against damages on the structure and theft of construction materials.
• Workers Injury Benefit Insurance Act.
  This is a statutory workplace injury compensation to insure employee health & safety risks. In case of injury of workers while at work, the insurance underwriter takes care of related expenses.
•  Applicable security/collateral: Registration of charge on either a title deed or on a certificate of lease for properties within municipalities, towns and cities. Where a leasehold is offered, a minimum residual lease of 40 years (or not less than 20 years at completion of the loan) is applicable at the onset of the loan.
  We do not finance agricultural and ancestral land .
  Specific approval of the board may be procured for property on agricultural land within the Nairobi metropolitan, subject to land board approval and the land not being part of an ancestral land. In this case the applicant may be required to procure a change of user for the land.
• Loan Processing Fees: A processing fee of 1% of the approved loan amount shall be applicable upon acceptance of HJL Letter of Offer.
• Mode of payment: The Jenga Loan is payable by check-off at pay point or FOSA where salary is paid through FOSA.
• Early Loan Repayment: Early principal pre-payments and early full loan redemption are allowed at no extra cost for the member/borrower.

The applicant is required to complete and sign Harambee Mortgage Application and provide the following documents.

• Letter of introduction by the employer {to indicate employment terms (permanent/contract), designation & length of service, income details, and staff discipline status etc.}
• Attach three months most recent and certified pay slips.
• Attach six months most recent and certified bank statements for all banking relationships.
• Irrevocable authority to the employer to deduct the monthly loan instalments via check off.