Rates and charges
Every rate, and every charge underneath it.
A rate on its own tells you very little. The charges that sit under it are on this page too.
Loans
| Loan | Rate a year | Maximum term | Processing charge |
|---|---|---|---|
| Development loan | 14%, reducing balance | 36 months | 1% of the amount |
| School fees loan | 12%, reducing balance | 9 months | 1% of the amount |
| Emergency loan | 15%, reducing balance | 6 months | 1% of the amount |
| Business loan | 16%, reducing balance | 24 months | 1.5% of the amount |
Development loan
- Rate a year
- 14%, reducing balance
- Maximum term
- 36 months
- Processing charge
- 1% of the amount
School fees loan
- Rate a year
- 12%, reducing balance
- Maximum term
- 9 months
- Processing charge
- 1% of the amount
Emergency loan
- Rate a year
- 15%, reducing balance
- Maximum term
- 6 months
- Processing charge
- 1% of the amount
Business loan
- Rate a year
- 16%, reducing balance
- Maximum term
- 24 months
- Processing charge
- 1.5% of the amount
You may borrow up to three times your savings after six months of membership. Two guarantors are required on every loan, and they must be members.
Savings and shares
| Product | Return | Notice to withdraw | Minimum |
|---|---|---|---|
| Ordinary savings | 11% a year, declared annually | 30 days | 50,000 a month |
| Fixed savings, 12 months | 13% a year, fixed at deposit | Locked for the term | 1,000,000 |
| Shares | A dividend, declared annually | Refunded on leaving | 10 shares at 20,000 |
Ordinary savings
- Return
- 11% a year, declared annually
- Notice to withdraw
- 30 days
- Minimum
- 50,000 a month
Fixed savings, 12 months
- Return
- 13% a year, fixed at deposit
- Notice to withdraw
- Locked for the term
- Minimum
- 1,000,000
Shares
- Return
- A dividend, declared annually
- Notice to withdraw
- Refunded on leaving
- Minimum
- 10 shares at 20,000
Declared rates are not guaranteed. The ordinary savings rate was 9 per cent in 2021 and 10 per cent in 2023.
The rules in plain words
What does reducing balance mean?
Interest is charged on what you still owe, not on what you originally borrowed. As you repay, the interest falls. On a 3,000,000 shilling loan over 24 months at 16 per cent you pay about 520,000 shillings in interest, not 960,000.
What is a guarantor actually agreeing to?
That if you stop repaying, the cooperative takes what you owe from their savings. Guaranteeing a loan is a real risk and we say so to every guarantor in writing before they sign.
Can the rates change while I hold a loan?
No. The rate on your loan is fixed at the day you signed for it. Only new loans take the new rate.