We are committed to providing our members with access to affordable and flexible loan options to meet their financial needs. To ensure responsible lending practices and support sustainable financial growth, we have established the following eligibility criteria for loan applicants:

Membership Requirement

  • Applicants must be registered members of KAG SACCO, meeting the membership requirements outlined in our membership guidelines.

Minimum Savings Period

  • Members are required to have a minimum savings period of six (6) months to be eligible for a loan. This demonstrates financial discipline and stability within our cooperative community.

Loan Security

  • Depending on the loan product, applicants may be required to provide collateral or guarantors to secure the loan. This helps mitigate risk for both the SACCO and the borrower, ensuring responsible lending practices.

Loan-to-Savings Ratio

  • Loan eligibility is determined based on a member’s savings history and loan-to-savings ratio. Members may qualify for a loan of up to three times their savings balance, subject to approval and credit assessment.

Creditworthiness

  • Applicants’ creditworthiness will be assessed based on factors such as repayment history, income stability, and overall financial health. A positive credit history and demonstrated ability to meet financial obligations increase the likelihood of loan approval.

Affordability Assessment

  • Before approving a loan, we conduct an affordability assessment to ensure that the loan amount and repayment terms are manageable for the borrower. This helps prevent over-indebtedness and promotes responsible borrowing practices.

Loan Purpose

  • Loans are available for various purposes, including but not limited to business expansion, education expenses, asset acquisition, emergencies, and personal development. Applicants must clearly state the intended purpose of the loan and provide relevant documentation where required.

Transparent Terms and Conditions

  • We are committed to transparency in our lending practices, providing clear terms and conditions for all loan products. Applicants are encouraged to review and understand the terms of the loan before proceeding with their application.