Mwalimu National Sacco Loans: Types, Requirements, and Interest Rates

Mwalimu National Sacco Loans: Types, Requirements, and Interest Rates

Mwalimu National Sacco is the largest savings and credit cooperative in Africa, with members from across the nation. Its mission is to empower educators by providing them with affordable financial services, including loans with notably lower interest rates.

Members, primarily teachers, have access to a range of loan options, each designed for different financing needs and with varying interest rates. To choose the right loan, it’s essential to understand the offerings of this Sacco.

BOSA Loan Products

The Back Office Services Activities (BOSA) loan products are secured against your deposits. The available options include:

Wezesha Loan

This is the only loan option that allows new members to apply without waiting six months. As a new member, your initial savings contributions are immediately available, allowing you to borrow up to Ksh. 600,000, with a third of the amount reserved for your savings.

Terms include:

– Exclusively for new members.
– 13% interest rate on the loan.
– A processing fee of 2% is deducted.
– The loan must be fully secured.
– Repayment period is capped at 36 months.
– Dividends from Mwalimu National Sacco will be distributed on a pro-rata basis based on shares raised.

Emergency Loan

This loan is available for unexpected events or emergencies, but you can only utilize one emergency loan at a time.

Terms include:

– 1% monthly interest on a decreasing balance.
– Must be repaid within 24 months.
– Based on one-third of your net salary, you can borrow up to five times your savings.

Normal Loan:

This short-term loan is designed to meet urgent financial needs.

Terms include:

– 1% monthly interest on a decreasing balance.
– Maximum repayment period of 36 months.
– You can borrow up to three times your deposits, subject to the one-third salary limit.
– Only one normal loan can be active at a time.

Development Loan

This medium-term loan is intended solely for investment purposes, and you can only have one at a time.

Terms include:

– 1.17% monthly interest on a decreasing balance.
– Must be repaid within 48 months.
– You can borrow up to four times your deposits, adhering to the one-third salary rule.

Super Loan.

This long-term loan is also meant for investment purposes.

Terms include:

– 1.20% monthly interest.
– You can borrow up to four times your member deposits.
– Must be repaid within 60 months.
– Only one Super Loan can be taken out at a time.

Vision 84 Loan

Another long-term investment loan offered by Mwalimu Sacco.

Terms include:

– 1.29% monthly interest on a decreasing balance.
– Maximum repayment period of 84 months.
– You can access up to five times your member contributions, with the one-third salary rule applying.

In addition to BOSA loans, Mwalimu Sacco also offers FOSA loans. Stay tuned for the next article for more information.

Mwalimu SACCO Membership, How To Join