Loans & Asset Financing – NDITHINI COMMUNITY DEVELOPMENT ASSOCIATION

"People Empowering People"

Normal Loans

They are share based and a borrower can access up to four times his/her shareholders

	Loan Size in (Kshs)	Repayment period (Months)	Interest %	LPF	LIFG
1	1200-12000 (1-10 Shares)	3-10 Months	3 %	250	150
2	12001-20000 (11-17 Shares)	3-12 Months	3%	250	250
3	20001-40000 (18-34 Shares)	3-15 Months	2.5%	250	550
4	40001-60000 (35-50 Shares)	3-18 Months	2.5%	250	1000
5	60001-100000 (51-84 Shares )	3-20 Months	2%	250	2000
6	100001-150000 ( 85-125Shares)	3-24 Months	2%	250	3000
7	150001-200000 (126-167 Shares)	3-30 Months	1.7%	250	4000
8	200001-300000 (168-250 Shares )	3-30 Months	1.5%	250	5000
9	300001-400000 (251-334 Shares )	3-34 Months	1.2%	250	6000
10	400001-500000 (335-417 Shares )	3-36 Months	1.2%	250	7000

Masomo Loan

It is based on saving(masomo saving). The borrower is supposed to plan for the loan by opening a masomo savings account for the intended loan.

The borrower can access a maximum of 2(two) times his/her saving as a loan.

Masomo loan application forms require fees structure as a proof of school fees need. Once approved the borrower will receive a cheque for the loan drawn in the name of the school/institution/college e.t.c

Borrower not allowed to withdraw the Masomo saving when he/she is servicing the loan . The interest is 2%

Emergency Loan

It’s for emergency cases
Must be a full paid or member of N.R.F.S with at least three shares
Maximum of cash Kshs 10,000
Repayment period of 1 month
Interest of 10%

Agri-business Loan

It is for agricultural purposes
It is share based
The interest rate is 2%
Duration of 5 months, 3 months being grace period while paying interest.

Asset Financing

It is a loan offered to people to buy items like;

Household items, electrical appliances, Tanks, water pumps etc

CONDITIONS

A penalty on delayed loan repayment of 1% per day on the outstanding balance
All loan interest are charged on reducing balance
All loans are paid on monthly basis and no grace period except on agri-business loans.
All loans go through KCM(Kikundi cha Mkopo) group approval.

Credit Policy

The N.R.F.S credit policy is developed by the board under F.S.A guidelines
No shareholder or borrower can access a loan more than 10% of the N.R.F.S shareholding(share capital)
The Ndithini Rural Finance Services use the group based lending system i.e any shareholder should be a member of a group known as K.C.M (Kikundi cha Mkopo) so as to access a loan
The group based lending system helps to spread the credit risks associated with micro-loan through the co-guarantee mechanism
K.C.Ms are formed by people with common interests and the formation methodology is self selection