This is a loan product, whereby our members are now able to procure land through our partner BROAD C who is as well able offer building materials and as well can build and complete the entire building to be occupied within six months and as well our members are afforded to buy purchase furniture of their choice through a reputable company/furniture shops via SACCO.
The process
We have identified and done a background check for some reputable land selling companies and a furniture company that are registered and well organized to partner with and they are very willing and open for such a partnership.
The model is that a member will visit SACCO for the loan and will be accorded an opportunity to see the land or furniture of their choice. Once they are happy, they will fill a loan form and as a SACCO will fill the related documents for ownership as the land or the furniture will be registered in SACCO name until the loan is paid in full then ownership will be transferred to the member.
The member will be able to start building or take the furniture immediately the forms are completed.
Affordability.
A threshold to number of times for shareholding and pays lip affordability for payroll-based organizations and business assessment for various members to be applied just like we do with all other loans.
Repayment period
The member will be able to repay the loan for up to 48 months.
The interest rate is 3.5% reducing balance method.
Benefits for Asset Financing
1. To The Sacco
(a) Liquidity management as we have agreed with the partners for a flexible payment terms unlike where the member takes cash at once. We have agreed a payment with six months.
(b) The loans will have double security in form of shares and in form the asset bought hence risk free.
2. To The Member
(a) Our members to acquire and build a home at peace other than waiting for retirement money to look for land and build
(b) Members to acquire bountiful and durable furniture and repay at ease. This will enable our members to have beautiful and comfortable homes.