FOSA Products

Fosa Products.

  1. Salary Advance.

Salary advance is a credit facility available to SACCO members whose salary passes through the FOSA and it is given on demand. It is paid through the salary by recovering from the FOSA account when the salary is processed. It can also be paid through cash if the customer wishes or if the salary fails. The minimum salary advance is Kshs 500 and the maximum is Kshs 200,000.

Salary advance qualifications.
1. One must be a member of the SACCO.
2. Salary must be passing through the FOSA.
3. Applicant must provide a copy of recent pay slip (at least the latest one month)
4. Photocopy of Identity card of the applicant and ID photocopy of the guarantors (All must be certified by signing).
5. The number of guarantors varies depending on the amount being applied as follows;

  • Ksh. 50,000 and below – 2 Guarantors
    • Ksh. 50,001- Ksh. 100,000 – 3 Guarantors.
    • Ksh. 100,001 and above – 4 Guarantors
  1. Offsetting is always allowed as long as the member qualifies.

Note: This product can also be applied from the customer member portal and USSD.

Security for salary advance.
1. Salary.
2. Deposits.
3. Guarantors.

 

  1. FOSA Loan

This is a credit facility available to SACCO members whose salary passes through the FOSA and it is given on demand. It is paid through the salary by recovering from the FOSA account when the salary is processed. It can also be paid through cash if the customer wishes or if the salary fails. The minimum FOSA Loan is Kshs 50,000 and the maximum is Kshs 250,000.

FOSA Loan qualifications.
1. One must be a member of the SACCO.
2. Salary must be passing through the FOSA.
3. The member can only commit up to 2/3 of the net salary
4. Applicant must provide a copy of recent pay slip (at least the latest one month)
5. Photocopy of Identity card of the applicant and ID photocopy of the guarantors (All must be certified by signing).
6. The number of guarantors varies depending on the amount being applied as follows;

  1. Ksh. 50,000 and below – 2 Guarantors
    b. Ksh. 50,001- Ksh. 100,000 – 3 Guarantors.
    c. Ksh. 100,001 and above – 4 Guarantors
  2. Offsetting is always allowed as long as the member qualifies.

Note: This product can also be applied from the customer member portal.

Security for FOSA Loan.
1. Salary.
2. Deposits.
3. Guarantors.

 

 

  1. Jitegemee FOSA Loan

This is the product given to members with special accounts in FOSA Such as Tusomeni account, Teens account, Mstaharabu account and Fixed deposit account.
The amount given as a loan should not exceed 70% of the amount in the special account.

Other attributes
• No processing fee will be charged on the loan.
• Loan interest shall be 5% of amount approved recovered upfront.
• Maximum period shall be 12 months.

 

 

 

  1. Dividends In Advance.

This is a product given to all members who qualify for dividend/interest on deposits for that particular year.

Conditions.

  1. Attractive Interest on amount given.
    2. To be given from the month of September based on the determined rate but total amount given shall not exceed 70% of the total eligible amount.
    3. Processing fee to be Ksh. 200.

The rate of determining dividend in advance shall be determined by management from time to time. This policy will be reviewed on annual basis.

 

  1. Okoa Salary Advance

This is a credit facility available to SACCO members whose salary passes through the FOSA and it is given on demand. It is paid through the salary by recovering from the FOSA account when the salary is processed. It can also be paid through cash if the customer wishes or if the salary fails.

Conditions
1. Attractive interest
2. Repayable in one month.
3. Amount given together with interest shall be equal or less than one monthly withdrawable amount.
4. For those with BOSA deposits, no need of guarantors but those without BOSA deposits shall have at least one guarantor with deposits in BOSA.
5. A maximum of Kshs 40,000.

 

 

  1. Institutions Loan

This is a credit facility given to private and public institutions which have collection account with the TN Sacco.

Conditions
• It must be institution, private or public.
• The account to be considered must be a collection account.
• The signatories of the account must be not less than 2.
• To be considered for the facility the institution must have actively operated that account for at least one year.
• Properly filled application form.

Appraisal
• Qualification 20% of customers total deposits for the last one year.
• Maximum amount of Ksh. 2,000,000.
• 15% interest per annum amortized.
• Repayable in 2 years (maximum).
• Fully signed affidavit.

 

Security
Charged collateral and other pledged securities that may be acceptable by the society. Such pledged securities must be commensurate with the Institution loan approved in terms of value. Valuation must be done for the collateral and loan approved must not exceed 70% of the collateral value.

 

 

 

  1. Mkulima Advances

Mkulima advance is a product given to farmers who channel their monthly farm produce payment through TN FOSA. These include;
• Dairy farmers
• Tea farmers
• Coffee farmers

Requirements
1. Channel ones farm produce payments through TN Sacco
2. Fill a form which should be guaranteed by the society and TN Sacco members.
3. The account should have been active for at least six months

 

Appraisal
1. 2/3 of the latest 3 months payments average.
2. Maximum amount is Ksh. 200,000.
3. Maximum repayment period is 12 months at an interest rate of 14.5 per annum.

 

 

 

  1. TN Overdraft Facility

It is a credit agreement made with TN SACCO that permits private and public institutions who have collection account in the Sacco to access more than they have in their account, without exceeding a specified overdraft limit.
The overdraft facility offered by TN Sacco can help institutions with short term cash flow problems. It is repayable in 4 months.

Conditions
• It must be an institution, private or public.
• The account to be considered must be a collection account.
• The signatories of the account must be not less than two people.
• To be considered for the facility the institution must have operated that account actively for at least one year.
• Properly filled application form.
• Minutes from the institution approving use of overdraft facility with TN Sacco.

 

Appraisal
1. 10% of customers total deposits for the last one year.
2. Maximum amount of Ksh. 250,000.
3. 2% appraisal fee changeable on yearly basis upon renewal.
4. 18% per annum.

 

Security
Overdraft facility must be secured adequately through pledged securities that may be acceptable by the society. Such pledged securities must be commensurate with the Overdraft approved in terms of value.
• Private institution must provide charged collateral with both the name of the institution and the Sacco.
• For public institution the overdraft facility form must be certified by education County director.