Q: If I clear a loan before its completion date will I be required to pay interest for future periods?
- No interest or penalty is charged for clearing a loan earlier than the contracted period for loans on reducing balance method. Loans on straight line method, the interest if fixed for the period of loan payment.
Q: What do I need to do when withdrawing from the society?
- A member needs to inform the society in writing of his intention to withdraw.
- A notice of sixty days is required in case of any refunds due to the member.
- A member needs to inform all loanees that he has guaranteed to seek alternative guarantors.
- In case of transfer of share capital, a member should fill a share capital transfer form after identifying the member to receive the Capital.
Q: Can I pay extra amounts outside payroll?
- A member can pay any amounts he desires into the FOSA account or society’s bank account at his own convenience the original deposit slip or copy of the transfer instruction in the case of electronic transfers should be delivered to the SACCO.
Q: Can I boost my deposits and take a loan immediately?
- Yes members can boost their deposits and apply for SACCO loans. Members are also encouraged to utilize the Share Booster facility as an alternative.
Q: Can I transfer my deposits from another Sacco to Egerton sacco? What are the benefits?
- One can transfer his deposits from another Sacco to Egerton Sacco as long as the former Sacco draws the amount in favour of Egerton Sacco Society Limited. A member who does so is treated as an old member even if he has just joined the Sacco and can apply for a loan immediately.
Q: What happens to my shares if I don’t get somebody to transfer to after I resign?
- It will be held in the Sacco and continue earning dividends for the member
Q: What is share banding how is it arrived at?
- Its matching loans awarded with monthly deposits contribution. It’s arrived at by basing on the loan tarrifs schedule.
Q: What is the meaning of projected balance?Outstanding balance after a month’s recovery
Q: What are the duties of the Board of Directors?,
A: The Board of Directors is the governing authority of a SACCO and is subject to any directives of a general meeting. Among other responsibilities, the committee has a duty to:
- Generally direct and monitor the affairs of the Society.
- Determine the interest rates on loans, subject to the society’s by-laws.
- Ensure the keeping of true and accurate records of account.
- Recommend to the annual general meeting, the dividend rate to be paid on shares and the interest on deposits.
- Authorise investments by the society.
- Ensure that the Society maintains a positive image within the industry and the economy as a whole
Q: What do I need when applying for a loan?
- Fully completed loan application form
- Minimum five guarantors who must be active members and have contributed deposits for at least six months. Guarantors’ and applicants shares MUST be equal to or more than the loan applied for.
- Outstanding loan by the applicant MUST be cleared before a loan of the same kind is approved.
- A most current pay slip certified by the applicant’s employer’s payroll officer, MUST be attached to the application.
- A copy of an acceptable form of identification (National ID/Valid Passport) MUST be attached to the application
- Must have been an active member for at least six months.
Q: Must I have guarantors when applying for a loan?
- Yes. All loans granted by the society must be guaranteed by at least (5) Five members of the society. Guarantors’ and applicants deposits MUST be equal to or more than the loan applied for. In special cases when loan is less/equal to deposits one could self guarantee but have to state in writing and will need to be approved. the SACCO also accepts collateral guarantee.
Q: How much loan can I qualify for?
- The maximum loan amount a member can be given at any one time is four times the member’s deposits less any outstanding loan balance. A member must take home at least a third of his/her pay after all deductions. Business loans are appraised based on business cash flows, share deposits and ability to pay.
Q: Can I apply for more than one loan?
- A member is allowed to take all the loan products on offer so long as total loans repayments do not exceed two thirds of the member’s basic salary and four times the member’s savings.
Q: How often are Normal loans granted?
- Normal loans are granted twice a month to enable the credit team to do all necessary follow-ups.
Q: Can I offset my deposits against my loan?
- A member is only allowed to offset his deposits against his loans if he places a notice of resignation and the deposits should be more than the outstanding loans.
Q: Guarantor replacement/substitution.
- This is done when a member places a notice of resignation as a legal requirement that a member should be free from guarantee.
Q: What is the interest charged on loans?
- Between 1% – 1.21%p.m but variates according to the loan applied.
A: Visit or Call the Sacco Office during business hours.
Visit our websites at www.egertonsacco.coop
Email firstname.lastname@example.org or email@example.com
- Class A are original members of the Sacco who are Egerton university employees Laikipia univ & Kisii univ employees and affiliated bodies.
- Class B Extended common bond to include business people, Chamaas and welfares.
Q: what are the benefits of savings?
- Saving provide security for future financial needs
- Savings accumulates funds for use now and after retirement
- High savings will qualify for higher loans
- High savings will result in high interest
- High savings will strengthen the society’s lending capacity
- High savings guarantees a member a comfortable retirement
Q: What are my rights as a member of egerton sacco?
A: As a member of a egerton sacco, you are entitled to a number of rights, including the right to:
- Attend general meetings.
- Vote on all matters put before the General Meetings of the society
- Get a share of surplus income at the end of each year
- Elect or be elected as a Board/Supervisory committee member of the Society
- Apply for loans
- Approve, reject or defer budget
- Participate in amending the society’s by-laws
- Fix borrowing powers of the society
Q: What are my responsibilities as a member?
Some of your responsibilities as a member are:
- Attend Annual and Special General Meetings and take part in decision-making,
- Adhering to the society’s by-laws
- Encouraging potential members to join your society
- Buy shares and make deposits in accordance with the By-laws and policies,
- Repay loans promptly and comply with the other regulations,
- Be loyal and show good co-operative spirit,
- Bring out problems affecting the Society and look for solutions,
- Participate in the Society projects both physically and financially,
- Attend educational meetings and seminars organized by the Society.
- Make use of the services of the Society as stated in the objectives of the society,
- Comply with these By-laws, the Co-operative Societies Act, Rules and General Meeting Resolutions.
Q: What do I benefit by being a member of Egerton Sacco?
- Competitive Interest rates on fixed deposit and savings accounts.
- Attractive dividends on shares.
- Attractive interest rate on deposits
- Wide range of financial services.
- Savings accounts.
- Children accounts.
- Salary processing.
- Transparent transactions with no hidden charges.
- Advances: loans, Cheques, Salary,Dividends
- Short and long term loans, with flexible repayments periods.
- Easy accessibility of managers to clients/Personalized service.
- A friendly and a well established customer relations service for inquiry advice.
- Micro-Lending loans.
- Quick and timely access to credit
Q: What are the requirements of opening a savings account?
- Photocopy of National ID Card
- Pay slip and copy of letter of employment.
- Entry fee of ksh.500
- Two passport size photographs-May be taken at the sacco
- Certificate of registration /copy of minutes authorizing in case of a group and welfare.
- Invest minimum share capital within six months
Q: How much do I need in my savings account to earn interest?
- Minimum Ksh.2,000 account balance
Q: What other products/services does Egerton Sacco offer?
- Salary processing.
- Fixed deposits account.
- Children accounts.
- M-pesa money transfer services.
- SACCO link ATM cards and mobile banking.
- SACCO Assurance.
Q: How do you qualify for loans from Egerton Sacco?
- Save for minimum period of three months for Class A and six Months for Class B members.
- Be a reputable and active member of the Sacco
- Invest Minimum share Capital.
- All loans are pegged on share deposits to a maximum of four times.
Q: What measures has Egerton Sacco put in place to ensure it remains stable?
- Egerton Sacco is run by Competent and qualified Staff members and committed Board of Directors and Supervisory Committee.
Q: What are Egerton Sacco recent achievements?
- Computerized office operations that enhance efficient service delivery to members.
- Continuous Audit.
- Timely Annual General Meetings.
- Prompt Dividends payments.
- Introduced new products tailored to the needs of our members.
- We have increased our client base and now serve more members of our society through incorporation of Class-B Membership and provision of micro credit.
- Excellent customer service.
- The society unlike its competitors believes in transparency and has no hidden charges but educates and trains members on our charges and how they can secure a good loan.
- All savings are well secured and all loans insured.
- Egerton Sacco gives you an opportunity to invest and grow through regular buying of shares which attract dividends at the end of the year.
- Moving into our modern offices and banking hall.
- Opening of new branches to serve Members more effectively and efficiently.
Q: What is a savings and credit cooperative (SACCO)?
A: This is an organization whose objective is to pool savings for its members and in turn provide them with credit facilities. SACCOs also aim at encouraging thrift amongst their members and to guide them on prudent financial management and investment practices.
Q: What is a Share?
A: A share represents a unit of ownership with a SACCO. The EUSACCO shares of Kshs 10,000 indicated in your payslip represents 100 shares of Kshs 100 each and it’s your share ownership in the Sacco. This amount is not a monthly deduction but a one off separation from deposits. All Sacco Societies are now required by law to have minimum share capital and for our Sacco Kshs. 10,000.00 per member is the minimum.
Shares are not refundable upon resignation but are transferable to a EUSACCO member. Shares are not used for loan eligibility calculation. Shares earn Dividend at the end of the financial year
Members are encouraged to increase their share holding in the Sacco to reap more dividends. Dividends are declared during the Annual General Meeting and are calculated based on the shares of the member as the end of the previous year i.e. 31st December.
The rates at which dividends are pegged depend on the profit made by the society as per the registered accounts. The dividends attract 5% withholding tax.
Q: What are deposits?
A: “Deposits” means accumulated sum of money contributed by the member on monthly to his/her Member Personal Account. Deposits are refundable once a member’s resignation has matured.
Deposits earn interest at the end of the year.
The minimum monthly contribution is Kshs. 2,000.00
Q: After withdrawing from the society, am I allowed to rejoin?
A: yes one can re-join the soonest he/she is ready and pay a rejoining fee.
Q: How often do you issue member’s statements?
A: Statements are issued on a yearly basis and on request
Q: If a member terminates/retires from the university, can he/she continue to be a member?
A: Yes, one can continue being member as long as they continue remitting EUSACCO deductions.
Remittance can be done for both deposit and loan repayment by placing a standing order at the bank, making monthly cash deposits or Check off from the new employer .
Q: Can I do a partial withdrawal of my deposits if I don’t have a loan?
A: Partial withdrawal of the deposits is not allowed. a member can wholly resigns from the society and reinvest back some of the Deposits.
Q: How soon can I get my Sacco Deposit refund after withdrawing from the society?
A: Deposits are refunded after 60 days; however a member can be refunded on request before expiry of the period at a fee (Instant resignation).