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.

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.