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MEMBERS PORTAL

Loan Security & Collateral Services

Loan Security & Collateral Services

Guarantors and member’s deposits form the core security for loans except when the amount applied for is equal to or less than a member’s free deposits (Uncommitted deposits after considering all loans guaranteed by a member), and if such member has not guaranteed anybody as at the time of loan application. In the event of default, the guarantors shall be the first point of reference for loan recovery. Additional security in form of collateral is needed for the loans that are more than Kes. 2 million unless such loan is fully covered by the member’s deposits and such member has not guaranteed anyone else for loan.

In addition to the current use of guarantors as loan security / collateral, the following are other ways in which members can secure their loans with Kanisa SACCO:

1.Use of Title Deeds

  • Members can access loans by using collateral in form of land Title Deeds in lieu of and/or in addition to guarantors;
  • Members will be able to access loans up to 80% of the force sale value of the land;
  • The Title Deed shall be valued and charged at the borrower’s expense;
  • The loan shall be disbursed only after the charging process is complete;
  • In case of default and the land is sold to recover the defaulted amount, the Society shall be under no obligation to sell the land at a price more than the defaulted amount and any interest incurred; and
  • Other Credit terms and conditions shall apply

2.Use of Member’s Scheme Fund

  • A member can make use of their Savings Scheme as security to loan taken;
  • Savings used as security shall be locked and shall remain inaccessible for withdrawal till the loan is cleared;
  • A member who has defaulted their loan shall have their savings inaccessible for the use as security; and
  • Other credit terms and conditions shall apply

3.Use of CAR LOGBOOK

  • Members can access loans by using collateral in form of their car logbooks
  •  Credit terms and conditions shall apply

4.Guarantorship from a member of KANISA

  • Members can access loans by using loan security of guarantors from members of the SACCO.
  • Other Credit terms and conditions shall apply