Mwalimu Sacco Loans Types Requirements & Interest Rates

Mwalimu National is the country’s largest African Sacco, with members from all around the country. The institution’s goal is to empower and enable tutors to gain access to inexpensive financial services. Mwalimu Sacco loans, for example, have significantly cheaper interest rates.

Mwalimu National Sacco provides a variety of loans to teachers and members. They are all suitable for different sorts of financing and have varied interest rates and conditions. To choose the best credit, you must first comprehend the loans given by this company.

This article highlights different types of mwalimu sacco loans, interest rates, loan amounts and repayment terms.

Mwalimu Sacco loan types

The alternatives for funding available to you as a member are listed below. We have provided the prerequisites for loan approval as well as their related interest rates.

BOSA loan products

Back Office Services Activities financing is made against your deposits. Products offered here include:

Wezesha loan

Wezesha is the only financing option that does not require a six-month wait before applying for loan processing. As a new member, you have immediate access to up to Ksh. 600,000, and your first savings deductions are deposited into your account. A third of the fund will be kept as reserves for you.

The following terms and conditions apply:

  • The product is only for new members
  • A loan interest rate of 13% will apply
  • The maximum repayment period is 36 months
  • A 2% processing fee is deducted
  • The credit should be guaranteed fully
  • Shares boosted will earn Mwalimu National Sacco dividends on a pro-rata basis

Emergency funding

This credit is only available for unforeseeable events or circumstances. Furthermore, you can only access one type of emergency financing at a time. The following terms are applicable:

  • A monthly interest rate of 1% on a decreasing balance is applied.
  • It must be paid back within 24 months.
  • Based on a third of your net wage, the multiplier is x5.

School fees loan

You can only apply for this for educational purposes. Only one school fee credit is issued at a time. The terms include:

  • 1% interest rate per month based on reducing balance It should be repaid within 24 months
  • The maximum limit you can obtain is five times your deposits.
  • The amount is based on the 1/3 net salary rule.

Normal loan

This is a short term form of financing that will help you in meeting immediate financial essentials. The terms below apply:

  • 1% interest per month on a reducing basis
  • The maximum loan repayment schedule is 36 months
  • You can only have a maximum limit of 3 times your deposits subject to the 1/3 salary regulation.
  • Only one standard loan can be granted at a given time

Development loan

You can only take this medium-term loan for investing purposes. You cannot have more than one credit at a time.

  • 1.17% interest rate per month on a reducing balance basis
  • It should be reimbursed within 48 months
  • You can only access a maximum of 4 times your deposits where the a-third-salary rule will apply

Super loan

Super loan is long-term financing that should be used for investment purposes. The following terms apply:

  • 1.20% interest per month
  • A limit of 4 times your member deposits Should be paid back within 60 months
  • You can only take one Super Loan at a time

Vision 84

Another long-term investment credit that Mwalimu Sacco offers is Vision 84. Its terms include:

  • 1.29% interest per month on a reducing balance system
  • Maximum repayment time is 84 months
  • You can access up to 5 times your member deposits, and the 1/3 salary regulation applies

Read also, Sheria Sacco Membership Eligibility & Requirements

Mwalimu National Sacco FOSA loans

Products from Front Office Services Activities (FOSA) are designed to suit all the needs of teachers by offering inexpensive and necessary banking services.

The items consist of:

Karibu loan

Newly employed teachers and interns are the only groups that can access this fund. The following conditions apply:

  • A 1.5% interest rate per month You should be a member
  • The repayment period is within 90 days after you receive your first salary
  • Newly employed TSC teachers can access a maximum of Ksh. 60,000, which will be disbursed in three phases of Ksh.