Back Office Services Activity (BOSA)
Back Office Services Activity (BOSA) enables a member to make deposits and access credit services. The deposits are non-withdrawable (refunded when a member withdraws from the sacco) and allows members to borrow against their savings, at very competitive interest rates.
BOSA SAVING PRODUCTS
This is the monthly contribution made by a member against which they can access loans, guarantee loan and earn interest at the end of the year.
- Minimum monthly contribution is a per Gold membership category
- To Earn interest on deposits, member MUST pay contributions consistently
- Ability to guarantee and be guaranteed
- Ability to access loans in multiples of 3 times on one’s
This is a unit of ownership of the SACCO and members earn dividends on the same annually when declared. The Share Capital is not withdrawable and cannot be used to guarantee loans or used as multiplier to access loan but can be sold or transferred to an existing member upon one’s withdrawal from the SACCO. The minimum share capital is Kshs. 9,000.00 or 90 shares of Kshs100.00 each by December 2021
Reasons why a member should have a Share Capital account:
- To drive the SACCO business.
- To meet the SASRA requirements that is the Institutional Capital.
- It’s a long-term investment with annual return.
The Loan Process procedure
- A member becomes eligible after three months of consistent contribution. Minimum deposit of 12,000
- Members are required to fill in a loan form and select the loan they are applying for
- Enough guarantors are required if loan applied together with any other existing loans is above the deposits
- Once the loan reaches Nyati office, the member is informed via SMS and the form proceeds for guarantor booking
- Loans can be differed if the form is faulty, guarantors are not eligible, it is not signed, or member does not qualify for loan.
- No form is returned to the member, the member is required to fill in a new form or guarantor additional form
- Members should ensure they know the they carry as guarantors responsibilities they carry as guarantors
- While granting loans, the members Gross Salary or income is considered, and the SACCO is expected to utilize a maximum of 2/3rd of the net income thereby leaving the member with a take home pay of not less than 1/3rd.
- Not listed in CRB
- For long term loans Less than kshs400,000: Minimum 3 guarantors (Aggregate of deposits covering loan amount).
- For all loans above Kshs400,000: Minimum 4 (Aggregate of deposits covering loan amount).
- Self-guaranteed loans max of 90% of deposits for members who have not guaranteed other loans
- A member can guarantee up to 6 loans