🏗️ Development Loan – Build Your Future with Confidence
The Development Loan is crafted to empower members who are ready to invest in real estate — whether it's purchasing land, buying a residential or commercial property, or constructing a home or investment building. This long-term financing option is ideal for members looking to achieve their property ownership goals while enjoying flexible terms and favorable rates.
✅ Loan Features & Eligibility Requirements
Active SACCO Membership:
To apply, you must be an active SACCO member with at least 3 consecutive months of consistent Main Savings contributions. Members who have defaulted on any loan are not eligible until their loan status is regularized.Loan Amount Eligibility:
You can qualify for a loan amount up to four times (4x) your total contributions in the Main Savings Account.
💡 Example: If you have saved KES 500,000, you may qualify for up to KES 2,000,000.
The maximum limit is KES 6 Million, though larger amounts may be considered based on fund availability and SACCO discretion.Loan Purpose:
The loan must strictly be used for:Purchasing land or developed property
Constructing residential or commercial buildings
Completing ongoing construction projects
Interest Rate:
Charged at a competitive 13% per annum, calculated on a reducing balance.
💡 This means your interest reduces as you repay the loan – saving you money over time.Repayment Period:
The loan is repayable over a period of up to 60 months (5 years), allowing manageable monthly installments.Loan Processing Fee:
A non-refundable fee of 1% of the loan amount is charged upon application, subject to a minimum of KES 10,000.Collateral Requirement:
All development loans must be fully secured using:Your member savings, or
Tangible property (land/house) acceptable by the SACCO.
🏘️ Collateral Guidelines
The SACCO accepts the following types of collateral, which must be registered and located within Kenya:
Developed Property (e.g. house, apartment, commercial unit):
Loan value: Up to 80% of the property’s market value
Forced value discounts based on location:
City Areas: 90%
County Headquarters: 80%
Rural Areas: 50%
Undeveloped Property (e.g. plots):
Loan value: Up to 75% of the property’s market value
Same discounting structure applies based on location
Legal Charge:
A formal charge is created on the property, registered with the appropriate land registry to secure the loan.
