Emergency

Loan

An Emergency loan is designed to help a member meet an unexpected short-term or personal need such as medical bills, funeral expenses, court fines and other unexpected calamities.

You may also need to make that quick holiday travel or vacation and require some money to cater for accommodation and other personal needs. This loan is for you!

Requirements and Features:

  1. Be a Sacco member with consistent contributions for a minimum of 6 months. Defaulters won’t qualify. Additionally, you will need to provide a collateral to qualify for the loan.
  2. You will be eligible for a loan of upto four times (x4) your current total Main Savings Account contributions.
  3. The maximum loan amount shall not exceed KES 500,000.
  4. Provide supporting documents why you need an emergency loan.
  5. The loan shall attract interest rate of 1.25% per month on a reducing balance.
  6. The repayment period shall be a maximum of one year (12 months).
  7. You will need to have Sacco escrow account with equivalent of at least three months loan repayment amount. This balance must be maintained throughout the loan duration.
  8. Pay a non-refundable loan-processing fee of 1% of loan amount subject to a minimum of $100.
  9. Show proof of ability to repay the loan – paystubs, other incomes etc.
  10. The collateral shall be the member’s savings or other acceptable property.
  11. A collateral will be needed if loan applied is more than 80% your savings
  12. Member guarantor(s) is/are allowed but the guarantor(s) must sign Sacco indemnity form.

Documents required when applying for a loan:

If you are employed:

  1. Pay-stubs for the latest 3 months (Notarized)
  2. Letter from employer confirming employment status (Notarized)
  3. Bank statements for the latest 6 months (Notarized)
  4. Copy of Kenya ID or Kenya valid Passport
  5. KRA PIN Certificate
  6. Copy of the latest W2 Form issued by the employer
  7. Two passport size photographs
  8. Security - Copy of the title document of a property acceptable by the Sacco (Minimum lease term 35 years)

If you are Self-employed or Contract:

  1. Bank statements for the latest 12 months (Notarized)
  2. Copy of Kenya ID or Kenya valid Passport
  3. KRA PIN certificate
  4. Two passport size photographs
  5. Business registration certificate
  6. IRS Business Tax Returns for the latest filing year
  7. Security - Copy of the title document of a property acceptable by the Sacco (Minimum lease term 35 years)
  8. 1099 Forms and/or any other supporting documents.

Collateral: Securities accepted by the Sacco

The collateral to be used must be located and registered in Kenya. The following are the types of security/collateral that are acceptable.

  1. Member’s savings: A part of member savings can be used as collateral. A member can borrow upto 80% of their savings without need for an extra security.
  2. Legal Charge: This form of security is used in cases where property in form of land or lease is used as collateral. The security is perfected by creating a charge and registering an encumbrance against the property being held as collateral.
  3. Debenture: A debenture is a form of charge registered against the assets of a company, which may be fixed, shares or stock. A debenture may be a floating charge against all the company assets or specific debenture against specific fixed assets.
  4. Deed of assignment: This is a document that allows the lender to collect any rent accruing from property that belongs to the borrower. In this case, such rent is paid by the tenant directly to the lender to offset the loan.
  5. Deed of Guarantee and Indemnity: This is a third party guarantee whereby the guarantor agrees to be liable for any non-payment of the loan or incase the borrower dies while the loan is still subsisting. This is further divided into three categories:
    1. Property deed of guarantee and indemnity - where the property owner guarantees the borrower using his property. Land is the most common and appropriate form of this security to be used as the guarantor’s collateral.
    2. Directors’ deed of guarantee and indemnity – In this case the directors of a company guarantees the loan advanced to the company. In this case scenario the directors guarantees the amount advanced in their own capacity.
    3. Corporate deed of guarantee - In this case the company guarantees the loan advanced to the borrower who can be a director or a shareholder in the company.
  6. Other form of securities are:
    1. Chattel Mortgage - suitable for medium size and emergency loans, they are in form of Motor Vehicle, Motorcycle or equipment.
    2. Deed of hypothecation – This is basically stock (store supply) security. If acceptable, proper books of accounts assessment must be done and inspected before creating this form of a security.

How to apply for Emergency Loan:

  1. Download the loan application form and complete in its entirety.
  2. Depending on your employment status (employed or self-employed), attach copies of supporting documents.
  3. Send by Postal Mail the completed form with all documents and a non-refundable loan processing fee of 1% of loan amount subject to a minimum of $100 check or Money Order to:

    Kenya USA Diaspora Sacco
    1320 Roswell Road
    Suite G6
    Marietta GA 30062

**Forms mailed without the loan processing fee and supporting documents will not be processed.**

Download Loan Application Form

Ungana na Sacco Ujijenge!
Contact Us


United States:

1320 Roswell Rd
Suite G6
Marietta GA 30062
TEL: 1- 678-398-7728
FAX: 470-465-1066
470-465-1064
Email: info@kenyadiasporasacco.com

Sacco Office Hours:


8.00 AM - 6.00 PM: Mon - Fri
CLOSED: Sat - Sun

Standard Eastern Time Zone


Kenya Office:

Victoria Towers, Ground Floor
Kilimanjaro Avenue, Upper Hill
TEL: +254 792 746 217
Email: info@kenyadiasporasacco.com