Education loans offer financial support to pursue higher studies, covering tuition fees, books, accommodation, and other related expenses. They enable students to focus on their education without financial constraints, fostering personal and professional growth.
Education Loan Features:
- Maximum Loan Amount: With a maximum loan cap of Kshs 1 million, our education loan program provides substantial financial assistance to students pursuing higher education aspirations.
- Loan-to-Deposit Ratio: Students can access loans up to 4 times their savings deposits, ensuring ample financial resources to support their educational endeavors.
- Flexible Repayment Period: Our education loans offer a flexible repayment period of up to 36 months, allowing students to manage their loan obligations while focusing on their academic pursuits.
- Competitive Interest Rates: Benefit from competitive interest rates of 16% per annum on reducing balance, ensuring affordability, and minimizing the financial burden on students.
- Guarantor Requirement: To enhance the security of the loan, borrowers are required to provide full guarantees from both themselves and another member(s) who can pledge their withdrawable shares.
- Quick Disbursement: Experience swift access to funds with our expedited loan disbursement process, typically completed within 3-5 working days from the time of application approval.
- Collateral Option: For borrowers opting to utilize collateral, such as a title deed, our microfinance offers loans equivalent to 70% of the collateral's appraised value. However, it's essential to note that the collateral evaluation process may extend up to 2 months or more due to various factors, and associated charges such as search fees, valuation costs, legal fees, stamp duty, and registration expenses are borne by the borrower.
Requirements:
1. Membership Duration: To qualify for an education loan, applicants must have completed a minimum of 6 months of membership with our microfinance and maintain up-to-date monthly contributions.
2. Consistent Contribution: Ensure a consistent contribution history of at least 6 months preceding the loan application, demonstrating financial responsibility and stability.
3. Savings Stability: Any savings intended for loan acquisition purposes must have been held within the microfinance for a minimum of 6 months, reflecting a commitment to long-term financial planning and stability.
4. Financial Capability: Demonstrate the ability to repay the loan through comprehensive documentation showcasing financial stability and sufficient income sources.
5. Membership Transfer: Members transferring shares from another society will be eligible for a loan after a probationary period of 3 months, ensuring adherence to membership guidelines and regulatory requirements.
6. Insurance Coverage: As an additional safeguard, all education loans are mandatorily insured by a reputable insurance company against unforeseen events such as death or permanent disability, providing peace of mind and financial security to borrowers and their families.
By offering comprehensive education loan solutions coupled with stringent eligibility criteria and risk management measures, our microfinance endeavors to empower students in their pursuit of higher education while promoting financial stability and community prosperity.
