BOSA Services

Bosa Services.

  1. Shares

Shares are non-refundable savings; a member can only transfer these savings to another member.

The minimum amount of every member is Kshs. 10,000 which is built little by little from when one joins the society. Every year shares earn dividend depending on the performance of the society.

Shares can be added to deposits to determine the amount of loan a member can qualify i.e. shares plus deposits x 3 or 4 depending on the type of a loan a member is applying.

Shares Transfer Procedure.

1)    Share owner must ensure that he or she had no credit with the society.
2)    He must ensure that he or she is not a guarantor to any other member of the society
3)    If not retired he or she must bring a clearance certificate from his or her employer
4)    After the above is certified the member gives the society 60 days’ notice upon which the member   can be allowed to transfer his or her shares.

  1. Deposits

These are SACCO non withdrawable savings, these savings are contributed by all members of the society every month. Retired members contribute a minimum of Kshs. 500 and those who are still working a minimum of Kshs. 2,000 every month.

Non withdrawable deposits are used as collateral against borrowings and also acts as a base on which determines the amount a member qualifies as loan. i.e. (3) three times for ordinary members and 4 (four) times for preferential members. Deposits earn interest every year end depending on the performance of the society.

Deposits Withdrawal Procedure

  1. Retired member are allowed to withdraw their deposit if they have no loan with the society and have not guaranteed any other member any credit facility with the society.
  2. Those retired members who opt to continue with their membership are allowed to withdraw but remain with at least Kshs.1,000 as deposit and also ensure they channel their monthly pension through TNT FOSA in which standing order shall be placed to be deducted a minimum of Kshs. 500 to build their deposits again.
  3. Those still under employment and wish to withdraw their deposit the following procedure must be followed.
    i)      Ensure they have no credit facility with Tharaka Nithi Teachers SACCO. Note Offsetting of loan against one deposit is not allowed.
    ii)     They must not be a guarantor of any credit to any member of the society.
    iii)    One must bring a clearance certificate from his or her employer.
    iv)    One must give the society a notice of 60 days upon fulfilling all the above.
  4. Savings contribution paid in cash or cheque to boost deposits outside the check off systems In excess of one third of a member’s basic salary shall remain in the society for a period of three months to qualify for any loan, unless shares transfer from other society.

 

 

 

Retirement Savings Fund (RSF)

 

This is a fund which acts more or less like a pension scheme but tailed to suit the members of Trans Nation Sacco. This product is voluntary; it is meant for members who have not retired. In case one has retired and wishes to join the program, he specifies the maturity period when the refund will be refunded to him but not less than three years. In this product a member is allowed to contribute as low as 300= every month to build his/her fund. This fund can only be given back to a member when he/she retires or when one loses his or her job or on the maturity in case of retired members. If the contributor dies the fund is refunded to his/her next of kin.

Benefits to the Member

  1.  The fund earns dividend which is ploughed back to the fund.
    2.    This fund does not act as the security of any loan, meaning even if the member   defaults the loan, this fund cannot be used to pay his or her loan.
    3.    The member is guaranteed of his fund when he retires or on the maturity in case of retired member.
    4.    It gives a member a reason to smile when going home after retirement.
    5.    It gives a member opportunity to save as saving has become a real nightmare to most people.

 

Preferential loaning program

This is a program designed to enable our members with a view of making major development e.g. house building, land purchase or any other asset financing etc to qualify for bigger amount of loan.

  1. A member under preferential loaning program enjoy similar loan terms as any of the above loans i.e. development, special loan
    2. The only difference is the multiplying factor which is four (4) times instead of (3) times ones deposits plus shares.
    3. The member must fill an agreement form at the time of entering the contract
    4. The member must capitalize the dividends/interests so declared on deposit/shares contribution for three (3) consecutive years.
    5. The members qualify for loaning in the first year of dividends/interest forfeiture.
    6. Where such member does loan top up under similar terms and conditions (preferential member) then the number of years to forgo the dividends/interest starts count from year preceding the top up.
    7. After the lapse of the period (three years) the member starts enjoying the dividends/interests.

 

Retired Member Program

This program aims to retain the retired members in this SACCO. It allows a retired member to continue contributing deposits in the SACCO through their monthly pension which must be channeled through the society. This is done by way of placing a standing order and the minimum deposit contribution is ksh. 500.

The program enables the pensioner to enjoy all the rights and obligations as other members do.