What is Faulu Chama Loan?
A product that targets formal and informal groups such as investment clubs, merry-go-rounds and welfare groups and are operating a Faulu Chama account.
What's in it for you?
- Favourable and affordable rates
- A flexible repayment period
- LPO financing for group business contracts and business opportunities
- Members can access individual loans
- Members access to Faulu’s affordable medical and life covers at discounted premium rates
How does it work?
- In terms of ability to pay -The loan instalment should not exceed 85% of the average monthly Chama contributions. Chamas with additional regular income e.g. rent will be considered as well
- Chama should have been in existence for at least 6 Months
- Chama must have banked with Faulu for at least 3 Months (and avail at least 3 months certified bank statement from other banks to make 6 months )
- In addition, the Chama should be able to pay incidental costs of security perfection (valuation, legal fees), stamp duty
- Copies of I.D. and PINS for the officials, list of all group members, their contacts (including physical address) and their business activities
Want to know more about Faulu Chama Loan?If you want to know more, we've put together some frequently asked questions for you.
- You can get a minimum KES. 50,000 and maximum of SOL (Single Obligor Limit)
- Loan up to 10 times Chama saving subject to appraisals. This to be tiered (the first loan is 5 times, the second loan 7 times the 3rd loan is 10 times based on monthly contribution)
- Faulu will finance 100% of the selling price of land or market value whichever is lower for land acquisition. The land being financed will be held as security
- The Savings will be retained and held in lien as additional security for the loan
- For normal Chama term loans; other conventional securities will be accepted and discounted normally (50% FSV for Motor Vehicles, 50% Market Value for Shares, 90% for Cash etc.)
- LSUF: 3% of principal
- Annual review fee of Ksh 0.5% of the outstanding balance, applicable for loans running more than 12 months
- Incidental costs of security perfection (valuation, legal fees), stamp duty