With the current economy, most people in Kenya now are finding it necessary to save for rainy days, to have a side hustle, or better still, to invest in projects that will generate more income.
Chamas are very common in Kenya, where people come together, with the aim of saving to achieve a specific goal.
Today, we even have family members who form investment groups. A very good way of lifting one another in a family.
Sometimes, a group will have an idea about the kind of project they would wish to venture into but lack the funds to start the whole thing off.
In such cases, the Co-operative Bank of Kenya has made things a lot easier for people or groups with such brilliant visions but are financially disadvantaged.
Co-op’s bank Club Special loan comes in handy for Chamas or groups that seek to invest. Features of this service include;
- Maximum loan amount of up to 50 million or 5 times the group’s savings
- Repayment period of up to 72 months
- 100 percent financing of the project cost
- Affordable interest rate
- The loan is accessible to groups as a corporate body
For you and your investment group to be eligible for this service, the following will be required of you;
- The group must be registered with the concerned registering body e.g. ministry of social services, ministry of gender, etc.
- Group account operational for 6 months with Co-op Bank or with other banking institutions
- Open Mshiriki current account and an investment company account with the Co-operative bank
- The group must be making monthly contributions through the Mshiriki account
The securities acceptable to the Bank under this loan product include:
- Cash
- Shares quoted in the Nairobi Securities Exchange.
- Residential Properties
- Commercial Properties
- Land
- Supported Debentures
- Chattels Mortgages on Motor Vehicles, Machinery, etc.
- Guarantees supported by Tangible Securities.
- Approved Overseas Guarantees
- Treasury Bills & Treasury Bonds
- Approved Endowment Insurance Policies.
Read Also: Process of Depositing Money To Co-op Bank Account via M-Pesa