Stima SACCO Mortgage was launched by the sacco partnership with the Kenya Mortgage Refinance Company (KMRC), a treasury backed lender, targeting both individuals in formal and informal employment.
Apart from mortgage, stima sacco offers various sacco loans. The purpose of the scheme is to offer affordable mortgages to members of the SACCO with bespoke terms.
Stima sacco Mortgage Loans
- MORTGAGE LOAN
LOAN TYPE: PERSONAL LOANS – FORMAL SECTOR Purpose To buy a residential house or for building a residential house Loan used in: Residential property purchase / Land purchase and Construction Target Market Individuals in permanent employment or on contract Employer evaluation Credible employer with a check off arrangement with the SACCO. Non check off companies to be vetted and exempted by Business Development on a case by case basis. Eligibility •Must be a member of Stima Sacco. •Must be salaried.
•Must have made uninterrupted 6 months regular contributions prior to application date
• Must have ability to pay. (Loan repayment not exceeding 2/3 of their basic pay)
•Within the retirement age
• Applicant should have been in work/employment for at least 12 months and in current employment for at least 6 months.
• First time home owners only
Employer documentation • MOU ( For check off arrangements) • Irrevocable letter to channel salary and terminal benefits through Stima DT Sacco.
•Call back form for non-check off
•Copy of employee letter of appointment/confirmation
•3 months’ certified pay slips
Product Features Loan pricing: •Interest rate: 9%
•Method of calculation: Reducing Balance
•Loan insurance fund and seed loan : 1.5% plus 110
• No bridging of other loans. • Disbursement can be done in tranches for a maximum period of 6 months for construction loans.
• No grace period.
Loan Tenor: Up to 25 Years (Subject to remaining contract period)
Mode of Repayment:
•Check off
• Direct Debit
Frequency of repayment: Monthly
Mode of Loan Disbursement: Direct credit to Prime Account
Loan Amount: Max 4 Million
Deposit .Minimum alpha deposits of kshs 200,000 and minimum shares of kshs 25,000
Contractual monthly deposit: Kshs 1,000/
Property insurance cover– To be done annually by M-pawa insurance agency.
Product benefits • Enable members access funds at competitive rates • Flexible security requirements
• Fast processing of loans
• Savings stimulus for members
Appraisal Requirements - Borrower must meet membership eligibility criteria
• References from employer,
• CRB
• Copy of valid national ID/ Kenyan Passport, KRA PIN.
• Original pay slips for the last 3 months.
• Duly filled mortgage loan application form
• Copy of the title deed.
• Valuation report from an approved panel of valuers
• Certified account statements (Prime/Operative account + Loan Statements) • Sale-purchase agreement where property is being purchased
• Approved plans and BQs
• Photographs of collateral + Map
• History of Previous borrowing
• Urban residential properties to be financed and taken as security or residential property governed by Land Control Act as agricultural land for which appropriate Local Land Board consent both to charge and sell and is marketable.
• Others- like utility bills
• NB- Where a leasehold property is to be purchased, the property must have a minimum balance of 40 years
Security/Collateral Title for the property being bought or under construction. An additional tangible security may be required where the property is not sufficient to cover the loan. NB Security margins will be observed as defined in the Mortgage policy.
All loans must adhere to the E & S Policy guidelines
MIS Code Branches offered • All branches Contracting documentation • Loan application form • Valuation report
• Offer letter
• Repayment schedule
• Charged title
Chief Manager Strategy & Business Signature Date 2 . STIMA SACCO MORTGAGE LOAN
LOAN TYPE:
BUSINESS LOANS – INFORMAL SECTOR Purpose To buy a residential house or for building a residential house. Loan used in: Residential property purchase / Land purchase and Construction Target Market Individuals in Business or those who have rental income Eligibility • Must be a member of Stima Sacco. • Must be in business or have rental income.
• Must have made uninterrupted 12 months regular contributions prior to application date
•Must have ability to pay.
• Maximum age of 60 Years
• Applicant should have been in business for more than 3 years.
Business documentation • A valid business license and certificate of registration •Business pin certificate
•Business records such as cash book, invoices, purchases/sales ledger etc.
• Utility bills.
•Cash Flow statements (actual and projected)
Where applicable the below documents should be considered.
•Tax compliance certificate.
•Memorandum and Articles of Association.
•Company KRA PIN
•Certificate of incorporation.
•3 years audited accounts where applicable.
• Latest CR12 where applicable
•Partnership deed.
•Partnership resolution to borrow
Product Features Loan pricing: • Interest rate: 9.5%
• Method of calculation: Reducing Balance
•Loan Insurance fund and seed loan: 1.5% plus 110
•No bridging of other loans
•Disbursement can be done in tranches for a maximum period of 6 months for construction loans.
•No grace period
Loan Tenor: Up to 20 Years.
Mode of Repayment:
•Internal Standing Order from prime account.
•Direct Debit.
Frequency of repayment: Monthly
Mode of Loan Disbursement: Direct credit to Prime Account
Loan Amount: Max 4 Million
Deposit : Minimum alpha deposits of kshs 400,000 and minimum shares capital of kshs 25,000
Contractual monthly deposit: Kshs 1,000/.
Property insurance cover- To be done annually by M-pawa insurance agency.
Product benefits - Enable members access funds at competitive rates
- Flexible security requirements
- Fast processing of loans
- Savings stimulus for members
Appraisal Requirements • Borrower must meet membership eligibility criteria
• CRB report
•Copy of valid ID, KRA PIN for individuals and business.
• Duly filled mortgage loan application form
•Copy of Title,
• Photos of the property.
• History of Previous borrowing.
• Valuation report from an approved panel of valuers
• Certified account statements (Prime/Operative account + Loan Statements)
•Sale-purchase agreement where property is being purchased
Approved plans and BQs
- Photographs of collateral + Map
- • Business/ client visit should be done.
- • Sketch map of business location
• Urban residential properties to be financed and taken as security or residential property governed by Land Control Act as agricultural land for which appropriate Local Land Board consent both to charge and sell and is marketable.
• NB- Where a leasehold property is to be purchased, the property must have a minimum balance of 40 years
Security/Collateral Title for the property being bought or under construction. An additional tangible security may be required where the property is not sufficient to cover the loan. NB Security margins will be observed as defined in the Mortgage policy.
All loans must adhere to the E & S Policy guidelines
MIS Code Branches offered • All branches Contracting documentation Loan application form • Valuation report
• Offer letter
• Repayment schedule
• Charged title
Chief Manager Strategy & Business Signature Date What are the salient features of the specific stima sacco mortgage products?
a)Individuals in Permanent employment or contract
- Interest rate: 9%
- Method of calculation: Reducing Balance.
- Loan insurance fund and seed loan: 1.5%
- Disbursement can be done in tranches for a maximum period of 6 months for construction loans.
- Loan Tenor: Up to 25 Years (Subject to remaining contract period).
- Mode of Repayment: 1. Check off. 2. Direct Debit-
- Frequency of repayment: Monthly.
- Mode of Loan Disbursement: Direct credit to Prime Account.
- Loan Amount: max. Kes 4 Million.
- Deposit. Minimum alpha deposits of Kes 200,000/= and minimum shares of Kes 25,000/=
- Contractual monthly deposit: Kes 1,000/=
- Property insurance cover- To be done annually by M-Pawa Insurance Agency.
b) Individuals in business or those who have rental income
- Interest rate: 9.5%
- Method of calculation: Reducing Balance.
- Loan Insurance fund and seed loan: 1.5%
- Disbursement can be done in tranches for a maximum period of 6 months for construction loans.
- Loan Tenor: Up to 20 Years. Mode of Repayment: Internal Standing Order from prime account or Direct -Debit.
- Frequency of repayment: Monthly
- Mode of Loan. Disbursement: Direct credit to Prime Account. o-Loan Amount: max. Kes 4 Million
- Deposit: Minimum alpha deposits of Kes 400,000/= and minimum shares capital of Kes 25,000/=
- Contractual monthly deposit: Kes 1,000/=
