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Who is eligible to become a member?
- Any like-minded person, group or corporate whether local or diaspora that has duly conformed to the bare minimum membership policy.
How do I join if I qualify?
- Visit a branch near you and fill in a membership application form or download the form from the website. Attach a recent passport size photo, a copy of your national ID/ passport, a copy of your KRA PIN certificate, and registration fees of Ksh. 1,000 (subject to review). Submit the duly filled form to the Sacco office near you or send via post office or via authorized courier services with all the relevant attachments.
What about registration requirements for other forms of membership categories?
- If you are registering a joint, group, and corporate or diaspora account, please check on our website under membership on membership category and see the requirements for each.
Is my spouse/ children eligible to join the Sacco?
- Yes, both the spouse and children of registered members are equally eligible to join the Sacco provided they have met with the bare minimum requirements or tagged alongside the principal members’ eligibility (as the Society may deem fit).
What are my rights as a Sacco member?
As a Sacco member you are entitled to the following rights;
- Attend general meetings, vote and be heard in those meetings.
- Elect the committee, share in the society’s surplus and inspect the books of accounts and apply for a loan subject to the SACCO’s rules.
- Appoint nominees, transfer deposits in the society with the approval of the committee.
- Withdraw from being a member of the SACCO.
- Approve, reject or defer the budget, participate in the amendment of the society’s bylaws.
- Fix the maximum borrowing powers of the society and the honoraria for committee members, if any.
- Request for an inquiry to be conducted on the society by an officer appointed by the Commissioner for co-operative development.
- Demand for a special general meeting after fulfilling the requirements.
- Appeal to the Minister should he not be satisfied with the decision of the Commissioner.
- Enjoy all the services provided by the SACCO.
What are my duties as a Sacco member?
As a Sacco member you are required to do the following;
- Attend the members’ education days in order to learn about the SACCO and its activities.
- Be loyal to the SACCO and abide with the societies bylaws.
- Participate in the activities of the co-operative society, such as attending meetings.
- Encourage potential members to join the co-operative society.
- Not be members of more than one society with the same or similar objectives.
- Not have more than one vote, and serve the co-operative society with honesty and dedication when elected into the committee.
How much is the minimum and maximum contribution?
- The minimum contribution is Ksh. 1,000 per month and there is no limit to the maximum amount that can be contributed.
How much is the minimum and maximum contribution towards the share capital?
- Members are required to contribute a minimum of Ksh. 2,000 as share capital which is not refundable. The maximum share capital a member can hold at any particular time is not more than one-fifth (1/5) of the total shares (subject to review based on the Society’s net worth).
What about minimum and maximum share capital contribution for other membership category?
- For other membership category such as joint, group, and corporate or diaspora account, please check on our website under savings section and see the minimum and maximum contribution for each.
How do I register or remit savings?
- You can send funds either using MPESA or Bank as follows;
M-PESA
- Go to M-PESA on your phone menu.
- Select payment service/lipa na Mpesa. Select Pay bill. Enter the Business number 247247.
- Enter account number: 0230275004940. Enter Amount.
- Confirm that details are correct and press ok.
BANK
- Account Name: Moto Hope Sacco
- Account No: 0230275004940
- Bank Name: Equity Bank
- Branch: Corporate
What is the difference between deposits and shares?
- A member deposits are withdrawable savings while shares or share capital is the permanent member contribution toward the Sacco capital and forms part of Sacco equity.
- Shares cannot be withdrawn even on exit from the Sacco but can be transferred to another willing member.
- Each member must have a minimum of Ksh 2,000 in share capital unlike deposits which have no minimum amount.
- Deposits earn interest while share or share capital earn dividends.
- Deposits can be used as loan security while share cannot be used as loan security.
Who is eligible to access credit facilities?
- All members that have been duly admitted and approved by the Sacco in accordance with the membership policy.
When do I qualify for credit facility?
- A member is ONLY eligible after a minimum membership period of six (6) months and upon fulfilling all the bare minimum requirements for the specific loan product being applied. However, members who transfer their deposits from another Sacco are eligible after a minimum membership period of three (3) months.
What is the maximum loan that I qualify?
- A member is eligible to a maximum loan equal to three (3) times their savings (share capital plus deposits * 3).
What are the loan requirements?
If you qualify for a credit facility, submit a duly filled loan application form attaching the following;
- ID/ passport copy
- KRA PIN certificate
- 2 recent colored passport size photo
- Certified six (6) months MPESA statement
- Certified six (6) months bank statement
- Three (3) months’ pay slip (for salaried members)
- Guarantors ID and/ or passports
- Business registration certificate
- A statement of income and expenditure (for corporates)
- Board resolution
What is the maximum loan repayment period?
- The maximum loan repayment period is 36 months for the platinum loans.
Can I have more than one loan at the same time?
- Yes, provided the concurrent loans do not exceed your maximum loan entitlement of three (3) times and you’ve expressed your ability to service them all.
Can I apply for a top up on existing loan?
- Yes, as a member you are eligible for a top up on an existing loan provided you have serviced at least 50% of the initial loan principal value. The society will charge and additional 3% bridging levy of the new loan application.
How long does it take before a loan is processed?
- Normally, for all normal loans, it takes not more than 21 days for the loan to be processed so long as all requirements have been met.
- Emergency loans are processed immediately or within 3 working days provided all requirements are met.
Is it possible to reduce my loan installment during cash flows constraints?
- No, as part of the policy you cannot reduce your loan installment at any given time as the installment balance will go in arrears leading to penalties and the possibility of the loan being declared in default. However, this is only possible if you had previously overpaid your installment.
Does the loan interest charged fluctuate during the loan term?
- No, any amendments on interest only affects new applications after revision.
Who decides on what interest to charge?
- The BOD through the recommendation of the management hold exclusive rights to review interest on loans from time to time.
Why did I receive less amount?
- As part of our loan policy, each loan is subjected to some upfront deductions i.e. processing fee, insurance fee, tax charge etc. and any other deduction that the management may find appropriate for any particular loan.
Why is my loan balance more than the previous balance?
- It is important to note that if a loan falls into arrears there is a penalty charge which may increase your successive loan balance. Consequently, if your loan has been declared as defaulted loan, it is equally penalized. During loan recovery, the loan balance may increase owing to the debt recovery measures undertaken by the Sacco.
Why was my loan rejected?
Normally, a loan is rejected as a result of any or a multiple of the following reasons;
- Inconsistency in deposit contributions
- Incomplete information
- Timeliness
- Inappropriate loan terms or purpose
- Inadequate shares and deposits
- Inadequate guarantors/salary/security to finance the loan
- Inability to repay
- Bad repayment history
- The new total loan balance exceeds the ceiling limit
- Lack of supporting documents.
What are the acceptable securities for a loan?
The acceptable securities for any loan is either or a combination of the following;
- Guarantors
- Sacco deposits
- Land (75% of market valuation)
- Buildings (75% of market valuation)
- Vehicles (75% of car valuation for used cars or 90% of car valuation for new cars)
- Share certificate
- Bank guarantee
- Corporate guarantee
- Endowment insurance policies
- Unit trust deposits
- CDS accounts
Who can become my guarantor?
- Any active member in good standing is eligible to be a guarantor provided they have not over guaranteed. Conversely, a guarantor must be willing and able to repay the loan guaranteed if the loanees fails to pay.
As a guarantor what is my role?
- If you have guaranteed any loanee by virtue of guarantorship you are jointly (together) and severally (individually) liable for the repayment of a loan in the event of the borrower’s default or demise.
As a guarantor what is my rights?
As a guarantor, you are entitled to any or all of the following rights;
- The right to obtain any document in relation to the loan transaction such as letter of guarantee or contract of guarantee.
- The right to the information on the outstanding balance of the account of the borrower with the Society subject to the borrowers consent.
- The right to call upon the borrower to pay off the loan to release them from all their liabilities under the guarantee.
- The right to be indemnified by the borrower for any payment made to the Society. Meaning that you can sue the borrower for the amount that has not been paid to the Sacco.
Do I need a guarantor if my loan application is equivalent to my deposits?
- No, if the loan applied does not exceed your total deposits then you don’t need a guarantor.
What is the minimum and maximum number of guarantors I should have?
- There is no minimum or maximum limit of the number of guarantors since this depends entirely on the loan amount applied for. However, a borrower’s deposits plus those of the guarantors MUST be equal to or more than the loan amount subject to risk exposure.
What are the available disbursement channels?
Loan applied can be disbursed through any of the following channels;
- MPESA
- EFT (Electronic Funds Transfer)
- RTGS (Real Time Gross Settlement)
- Cheque
N.B: Please note that the Sacco does not disburse cash.
Is it possible to repay the loan in full before the loan term is over?
- Yes, you are at liberty to clear your loan before the loan term without attracting early clearance charge.
Is it possible to alter loan repayment period during loan repayment?
- Yes, upon your request the repayment period may be altered at any stage of repaying the loan as long as the request is within the limits of a particular loan term, and is duly endorsed by all guarantors (if it’s an extension).
What are the available channels to repay the loan?
The Sacco accepts the following loan repayment channels ONLY!
- MPESA
- Standing orders
- Cheque deposits
- Bank deposit
N.B: Please note that the Sacco does not accept cash payments in any of its branches.
Can I offset a loan with part of all my deposits?
- No, offsetting a loan with part or all your deposits is not allowed because it is like refunding a member their deposit. A refund of deposit is only done on termination of membership.
Am I eligible to dividend?
- Yes, the Sacco pays dividend (Interest on deposit and dividend on share capital) every year to all the members who had balances in deposits or share capital for the financial year ended. Deposit earns interest on deposit on pro rata basis which means you don’t have to hold dividend for full year to earn interest. On the hand any balance on share capital as at close of financial year is entitled to dividend at rate to be recommended by the management committee.
How often are the dividends paid?
- Annually, the Sacco pays for dividend after approval by the Annual General Meeting which is done each year in March. The dividends are usually paid two weeks after.
How are dividends computed?
- Dividend is made up to two components that interest on deposits and dividend on share capital.
- Interest on deposit is computed on pro rata and compound basis at a rate to be recommended by management committee and approved by Annual General Meeting (AGM).
- Dividend on share capital is computed based on closing balance at the end financial year at a rate recommended by management committee and approved by the Annual General Meeting.
Who is a nominee?
- A nominee is the person designated by a member to receive the proceeds of any payable funds upon the death of the member.
- All members are required to provide details of nominee(s) upon registering as members.
- One can change and/or update his/her nominee information as when and need arises.
Can I withdrawal my membership?
- Yes, it is absolutely your constitutional right to join and withdraw to and from any Sacco at will.
Can I partially withdraw from the Sacco?
- No, no member will be allowed to partially withdraw part of his /her deposits or offset part of the deposits against an outstanding loan unless he/she ceases to be a member.
Can I withdraw my deposits from the Sacco?
- Yes, as a member you hold exclusive rights to withdrawal your deposits at any time but the Sacco will charge you a commission 10% of current deposit amount in lieu of withdrawal notice of 60 days.
What is the withdrawal procedure?
- You need to apply for withdrawal from the Sacco in a formal signed letter giving the Sacco sixty (60) days’ notice in line with Sacco by laws. The letter should be accompanied by your ID copy.
Can I withdraw my deposits when I have guaranteed another member?
- No, a member cannot withdraw his /her deposits that have been pledged towards another member loan unless that member has cleared that loan and has submitted a substitute guarantor to replace you.
If I withdraw from the Sacco can I come back?
- Yes, if you withdraw from the Sacco you can still come back but you’ll be charged a rejoining fee of Ksh. 1,500 (subject to review) and enjoy the same rights and privileges you used to enjoy before.
