Eligibility for a loan

A member of the society shall qualify for a loan provided that:-

7.1 – The member has completed at least six months of membership with the Society and contributed not less than Kshs. 500 per month amounting to at least Kshs. 3,000 in shares/savings. However, a member who has not completed six months but has transferred shares from another society to Investobrain will be treated like an old member and qualifies for a loan.
7.2 – A member who withdraws from the Society and rejoins later will be treated as a new member for purposes of this loan policy.
7.3 – Where a group of members have transferred from another Society to Investobrain, the previous Society shall transfer their total shares to Investobrain. In the event that they have loans, their former Society shall issue a cheque for their shares to Investobrain with a list showing their outstanding balances upon which Investobrain will process loans to the incoming members and issue a cheque equivalent to the value of their outstanding loans and interest. The members will complete loan forms for the loan balances transferred and repay the loans to Investobrain under the Society’s terms.
7.4 –  Savings contributions paid in cash or cheque outside the check-off system shall remain in the Society for at least six months before being considered for lending purposes.
7.5 –  All loans shall be restricted to members and shall be approved by the Credit Committee subject to final approval by the full Management Committee as provided in section 54 of the Society’s by-laws.
7.6 –  Every loan must be guaranteed by a minimum of three (3) guarantors who must be members of the Society. The total savings of the guarantors must be equal to or more than the loan applied for. A member may however guarantee his/her loan using only his/her shares provided that the loan amount and the interest payable do not exceed his shares.
7.7 – Total loans granted to a member shall not exceed three times the member’s savings and in all cases repayable within a period not exceeding 48 months but subject to the maximum of 5% of the Society’s share capital and reserves and availability of funds.
7.8 –  Any category of outstanding loan must be cleared before a new loan of the same category is disbursed.
7.9 – A member applying for a loan shall undertake to pledge future salary or terminal benefits from any employer towards loan repayment before such a loan is granted by the Society. A member who has qualified for a loan shall sign a letter of irrevocable authority, which shall be presented to the employer for purposes of loan recovery.