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 but can be sold or transferred to an existing member upon one’s withdrawal from the SACCO. The minimum share capital is Kshs. 5,000.00 or 50 shares of Kshs100.00 each by December 2017
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
1. A member becomes eligible after three months of membership provided their contribution is above 10,000.
2. Members are required to fill in a loan form and select the loan they are applying for
3. Sufficient guarantors are required if loan applied together with any other existing loans are above the deposits
4. Once the loan reaches the Nyati office, the member is informed via SMS and the form proceeds to guarantor booking
5. Period at the guarantor booking stage depend on the number of applied loans
6. Loans can be differed if the form is faulty, guarantors are not eligible, it is not signed, or member does not qualify for loan.
7. No form is returned to the member, the member is required to fill in a new form or guarantor additional form
8. Members should ensure they know the responsibilities they carry as guarantors
9. A member can guarantee up to 6 loans
10. While granting loans, the members Gross Salary is considered, and the SACCO is expected to utilize a maximum of 2/3rd of the net salary thereby leaving the member with a take home pay of not less than 1/3rd.