|Fri 08 Dec 17||By Mombo|
We never forget we’re looking after your money. We therefore, use a series of advanced checks to ensure members admitted are credit worthy and of integrity. This translates to creditworthy borrowers when loans are granted.
As well as looking carefully at credit history, we determine what loan applicants can afford, and more accurately forecast their ability to repay a loan.We take a careful approach to lending and only lend to member- borrowers who are creditworthy and can demonstrate that they are able to pay back the loan.
We have three types of loan facilities with interests of 12% per annum and periods of up to 48 months. The interest is calculated on a pay early pay less basis.
All loans are fully secured by either member-guarantors, logbooks or title deeds. In addition, all loans are credit life insured. Therefore, when a borrower passes on during the course of a loan cycle, the loan will be settled by the insurance on his behalf.
New members will be introduced to existing members to foster cohesiveness and networking. This in turn will make finding guarantors simple.
All Mombo Sacco savings are 100% life-insured against death, permanent disability and critical illness. When any of the above happens, a member or his beneficiaries gets paid twice their savings less any liabilities.
A guarantor’s interests are protected by ensuring a borrower is well assessed and the same shared with the guarantor. The guarantor will also be able to decide on the liability they intend to take for any loan they guarantee. In addition, all payments towards loan repayment by the borrower will be allocated to reduce the guarantor’s liability to the loan first, thus guarantor’s liability will diminish early as time goes by. Lastly, in case of borrower default, we will institute other mechanisms of recovery including but not limited to debt collection before we attach guarantor’s contributions.
Savings with Mombo Sacco are further protected by the Provision Fund which provides a buffer against all business risks. We aim to maintain the Provision Fund at a level intended to cover all expected future business risks so as to mitigate losses to savers. The Provision Fund is made up of payments from every borrower based on our assessment of their credit worthiness when a loan is granted. This fund operates under a separate bank account from the working capital of Mombo Sacco.
Landmark Plaza , Argwings Kodhek Road
254 706 503 230 | 254 710 940 006