The loan is processed within 48 hours immediately after the employer has credited Usalama account with salary deductions amount
The product has the following terms;
- The Eligible borrower must have been a member of the sacco for at least 4 months.
- The Eligible borrower must not be above 65 years of age.
- The maximum loan amount is UGX 60,000,000/= (Sixty million Uganda Shillings only)
- The maximum loan is 10 times the share capital of the individual borrower.
- A borrower must have at least 50% share capital, 50% balance to be offset from the loan disbursed.
- The loan interest rate is 12% per annum calculated on a reducing balance method (amortization).
- The maximum loan repayment period is 60 months.
- A 10% penalty fee is charged for failure to remit any “Due Installment”.
- Loan repayment is by equal monthly installments.
- A loan application is supported by:
- Salary payslip of the most recent month.
- Bank statement of most recent 3 months from the bank which receives client’s salary.
- The guarantors must have the capacity to offset any outstanding loan amounts in case the borrower defaults.
- Borrower’s repayment history.
- Letter of undertaking from the employer.
- Staff on Contract need to present a copy of the Contract document from the employer.
- Institutional deductions:
- The loan processing fee is 0.55% of the loan amount.
- The insurance fee is 1% of the loan amount.
