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Proposed products for Dudu SACCO Savings Products Savings Account MPA Deposits Features a) Available to All members.

b) Minimum deposits KShs 2500 c) No withdrawals allowed ( member can only withdraw upon leaving the Society) d) Used to security for loans Spouses of members will be allowed to join and enjoy full membership rights. a) Available to the children of members. b) Withdrawals allowed only once a year. c) Minimum opening Balance KShs 1,000/= d) Interest bearing Balance KShs 10,000/= Interest will be calculated monthly and posted in the account at the end of the year. ( period will be adjusted to have all accounts anniversary date as 31st December) e) Can be used as school fees savings. f) Members operating this account with a minimum of KShs 10,000 over six months will receive free bankers cheques for school fees, birthday gifts and be invited to Dusscco Junior Bash (2nd weekend of December) end of year party- in Nairobi and Kisumu. Adult children of members will be allowed full membership status. Available in KShs as well as USD . Flexi -TDA Variable amounts & variable duration a) Minimum opening Balance USD 100 b) Variable amounts can be used to grow the Account at any time of the month. c) Interest rate - determined by prevailing exchange regime. Interest rate to be paid on the minimum balance for that month. d) Interest rate to be added on the balance at the beginning of the month to form a new deposit balance. e) Members to get SMS alerts / statements at the end of each month. TDAII Fixed duration & fixed amount a) Minimum opening Balance USD 200
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Spouse Accounts Special Deposits 1. Children Accounts Dusscco Junior

2. Term Deposit

Accounts

b) Fixed duration c) No deposits allowed during the currency of the deposit. d) Interest rate - determined by prevailing exchange rate regime. Interest rate to be calculated at end of the period. Visit the office for detailed list on the rates 3. Group Savings Members are encouraged to form investments groups and save jointly

Members Can Use MPESA to send deposits to accounts (contact the office for Details)

Credit Products The Sacco will offer the following credit products to members, subject to the restrictions described Loans Loans will be offered where the Sacco is required to fund personal financial needs, fund expenditure of capital nature, purchase merchandise or finance business activities, built or purchase property and motor vehicles. Loans will include; Loan Type Salary Advance Features Loan amount determined by ability to repay. Granted to member who has operated in the SACCO satisfactorily for at least six months. Security: check - off Duration : Maximum of 3 Months Purpose: Meet needs of members immediate needs Price: 10% per month . Loan amount Maximum, basic salary X 3. Subject to a maximum of KShs 150, 000. Security: Salary. No guarantors Duration : Maximum of 6 Months Purpose: Meet settlementi needs of new members who have joined ICIPE and may need not secure guarantors, but require financial boost for settlement in Nairobi or Mbita Price: 10% per month.

Jambo Karibu personal loan

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Secured personal loan

Imararisha Biashara loan

Loan amount Minimum, KShs 30 000, maximum of KShs 3 Million. Security: 100% Cash backed. No guarantors Duration : Maximum of 36 Months Purpose: Meet needs of members who may not secure guarantors, for home improvement, furniture purchase etc Price: Maximum of a spread of 3% over the cash deposit. Loan amount Minimum, KShs 30 000, maximum of KShs 3 Million,. Security: 100% Cash backed. No guarantors Duration : Maximum of 36 Months Purpose: Meet needs of members who are running businesses and may not secure guarantors, to purchase of capital goods, machinery , renovate business premises, expand merchandise stock etc Price: Maximum of a spread of 3% over the cash deposit.

Loan Type Development Loan. I

Features Loan amount maximum of 3 x the unwithdrawable deposits Maximum KShs 1.8 million Granted to Back Office Account holder who has operated the account. satisfactorily for at least six months Security : Back Office Deposits + 3 guarantors Duration : Maximum of 48 Months Purpose : Long term capital development e.g. Construction, purchase of equipment etc Price: Minimum 12% p.a. reducing method Development Loan. Loan amount maximum of 3 x the unwithdrawable II deposits subject to the 2/3rd rule. Granted to Back Office Account holder who has operated the account. satisfactorily for at least six months Security : Back Office Deposits + 3 guarantors OR Charge OR mortgage Duration : Maximum of 48 Months Purpose : Long term capital development e.g. Construction, purchase of equipment etc Price: Minimum 15% p.a. reducing balance method Other conditions; Borrower to deposit 2.5% of granted loan amount monthly as deposits in the MPA or 10% of the basic pay (whichever is higher) for the duration of the loan. Jiinue personal loan Loan amount maximum of 3 x the unwithdrawable
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Emergency loan

deposits. Value of the loan may be increased depending on the value of security subject to 2/3 rule. Granted to Back Office Account holder who has operated the account. satisfactorily for at least six months Security : Back Office Deposits OR Charge OR mortgage Duration : Maximum of 36 Months Purpose: personal need Price: Minimum 15.5% p.a. reducing method Borrower to deposit 2.5% of granted loan amount monthly as deposits in the MPA or 10% of the basic pay (whichever is higher) for the duration of the loan. Loan amount maximum of 3 x the unwithdrawable deposits Granted to Back Office Account holder who has operated the account. satisfactorily for at least six months Security : Back Office Deposits + 3 guarantors Duration : Maximum of 36 Months Purpose: Meet emergency need e.g. Hospital bills, funeral expenses etc Price: Minimum 12% p.a. reducing method

Loan Type Education Loans

Motor vehicle loans

Features Loan amount maximum of 3 x the unwithdrawable deposits Granted to Back Office Account holder who has operated the account. satisfactorily for at least six months Security : Back Office Deposits + 3 guarantors Duration : Maximum of 36 Months Purpose : Funding of education expenses Price: Minimum 12% p.a. reducing method Loan amount: 40% of the CMV of the Vehicle. 90% if the Vehicle is Brand new. Security: Chattels Mortgage in Joint registration with the SACCO Duration 36 Months Purpose : Purchase used Car / track/ tractor/ less than 7 years old. NO PSVs will be financed Price; Determined by market conditions Borrower to meet all legal and valuation fees.

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Home purchase loans - Mortgage

Land purchase loan

Group Loans

Loan amount: 30 - 65 % of the CMV depending on location ( see securities Section of this policy) Security: Charge / Mortgage in Joint registration Duration 60 Months Purpose : Purchase a residential house Price; Determined by market conditions Borrower to deposit 2.5% of granted loan amount monthly as deposits in the MPA or 10% of the basic pay (whichever is higher) for the duration of the loan. Loan amount: 30 - 65 % of the CMV depending on location ( see securities Section of this policy) Security: Charge/Mortgage in Joint registration Duration 60 Months Purpose : Purchase used of agricultural land or construction plot for own use and not speculation. Price; Determined by market conditions Borrower to deposit 2.5% of granted loan amount monthly as deposits in the MPA or 10% of the basic pay (whichever is higher )for the duration of the loan. a) Members joining together and forming investment groups can be financed to achieve their objectives. For such initiatives, members of such groups may open group savings accounts and use the savings as collateral for loans. b) Investments should be viable and acceptable to be used as collateral by the SACCO. c) The group will continue boosting their savings during the loan period

. Loans will be for a maximum period of 48 months. Requests for periods longer than this will be considered subject to availability of liquidity and security provided (see Section 7of this Policy). Loans taken by spouses must be counter signed by the ICIPE employed partner who will be jointly and severally responsible for its performance. Guarantees / Bonds The Sacco on behalf of members issues these to third parties who could be suppliers or parties who have given a cash advance for the performance of a contract. These loans will be secured 100% by cash deposits, acceptable property or by guarantors.

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Securities All credit facilities offered must be secured. Shares will not be used as security. No member will be allowed to over-guarantee. The security acceptable to the Sacco include ; Nature of Security Withdrawable Cash Deposits; TB and Bonds Unwithdrawable Deposits + 3 guarantors Landed property secured by a mortgage or charge and developed with permanent structures a) City Centre b) Urban Centre c) Rural Market ( d) Undeveloped city property e) Agricultural rural properties Motor vehicle Log Book Chattels Mortgage, Joint Registration of title NB CMV Current Market Value Value of security 100% 100 %

a) b) c) d) e)

60% 55% 50% 55% 30%

of of of of of

CMV CMV CMV CMV CMV

40% of CMV

What cannot be used as collateral: The Sacco will not accept Savings at another financial institution or Stocks on the Nairobi Stock exchange

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Settlement includes purchase of basic house hold items, pay rent , purchase laptop ( research students) etc