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Sacco

The main objective of the Sacco is to provide members with an opportunity to save funds and obtain loans for provident and productive purposes. However, over the year the society has diversified its activities and services in its endeavor to satisfy member’s demands.

PRODUCTS AND SERVICES AVAILABLE TO SOCIETY MEMBERS

Over the years the Society has expanded its services and products to meet diverse needs and aspirations of the members. The Society being a member owned entity prides itself in being member focused so that the development of products and services are centered around the members needs.

(a) Saving facilities

Members are afforded with the opportunity to save funds on monthly basis for utilization in future. Members are encouraged to accelerate their monthly savings to improve the total savings. Members are motivated to save through highest savers awards both at national and provincial levels.
Savings mobilization encourages members to continually save their money with the Society as the savings form the Society’s main source of funding. The saving is done through monthly contributions of not less than Kshs 1000/=

BENEFITS OF SAVINGS TO MEMBERS

•    The more the savings the higher the dividends

•    High savings means a higher value of loans one can acquire.

•    Security for future economic needs

(b) Lending

The core business is to lend to members at affordable rates. The Society has tailored different loans products to suit its members. The interest rate for the loans is on reducing balance.

(i) Loans for Development.

Loans for development are granted at three times the members savings and are repayable in 36-48 months.

Basic Requirement to qualify for Development Loan
1.    One must be a member of Afya Sacco.

2.    One must have contributed continuously for at least 6 months

3.    A duly Completed application form

4.    Have an account in Fosa if one intends to clear other outstanding loans through Fosa

5.    Original pay slips for two months immediately preceding the date of application

6.    A copy of the members national identity card

7.    Copies of guarantors IDs

8.    Meet the ability to pay requirement governed by the one third (1/3) rule.

(ii) Emergency/School fees loans.

Emergency/School fees loans are granted according to the request 
where the member has no outstanding loans. They are also granted subject to the members ability to repay and are repayable within 12 months.

Basic Requirement to qualify for Emergency Loan
The basic requirements are similar to those for development loans.

(iii) Special Advances for loans clearance by cash -See FOSA services.

(c) Afya benevolent fund (ABF)

The contribution of three hundred shillings by members towards the ABF programme ensures that members’ savings and loans are insured in the event of death.

Refund of shares against deceased members are double while outstanding loans are written off through the ABF programme. The fund subsidizes funeral expenses by contributing Kshs. 100,000/=, 80,000/= and 60,000/= respectively in the event of death of a member, spouse and child respectively.

(d) Investments for members jointly with Society/ branch group ventures

The Society encourages the members to invest surplus funds viably. Members invested jointly with the Society in Afya Co-operative Investments.

The Society facilitates the members to invest in Branch Group ventures whereby members identify projects at the Local levels and acquire them

(e) Over the counter trading services

The OTC facility enables members to trade in the shares they own in the Afya Investments/Holding Co-operatives freely on willing buyers/willing sellers basis.

(f) Front office service activity (FOSA)

FOSA facilities offers services similar to those offered by Commercial Banks _ See FOSS services.

(g) Decentralised Services

The Society decentralized various services to the Branch level. By bringing services at the members door steps; members are able to conveniently, access emergency loans, ABF funds and FOSA services.

(h) Personal Loans

The personal loan scheme was introduced in 2006 whereby the society partnered with select commercial banks to provide personal loans to applicants .Under this arrangement, members obtain loans from the select banks through the society. Interest charged on personal loan is 16% per annum on reducing balance equivalent to 1.3% per month. The upper limit for this loan is Kshs 3,000,000 (three million) and lower limit is Kshs 100,000 (one hundred thousand). Loans are pegged to a maximum of seven times of the applicants savings.

Basic Requirement to qualify for Personal Loan

1.    One must be a member of Afya Sacco.

2.    One must have contributed continuously for at least 6 months

3.    A duly Completed application form

4.    Have an account in Fosa if one intends to clear other outstanding loans through Fosa

5.    Original pay slips for three months immediately preceding the date of application

6.    A copy of the members national identity card

7.    Copies of guarantors IDs

8.    A copy of the certificate of the personal identification number (pin) for first time applicants.

9.    Meet the ability to pay requirement governed by the one third (1/3) rule.

10.  Maximum granted is equal to or less than seven (7) times of member savings

(I) Afya deposit taking microfinance

Afya Deposit Taking Microfinance Limited has already applied for a license to begin its trading activities. Once trading commences the company will provide Microfinance services i.e. provision of financial services to low-income clients, including consumers and the self-employed. The range of products to be provided under this service to be unveiled on successful grant of license to commence operations.

(K) M-Sacco

This product enables Afya Sacco Society to provide mobile financial services to the members. This product is a result of the intergration of Sacco Banking Solutions with Safaricom’s M-PESA money Transfer Services.

As a result, members are able to carry out transactions including:-

  • Deposit and withdrawal of money from their Sacco accounts
  • Loan repayments
  • Airtime retail services
  • Payment of utility bills e.g. electricity and water

This service is available to those who apply for registration and present the application form to the branch where they operate an account. The application can also be downloaded and printed from the page here.