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Mombo Sacco Loans
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Whether you are looking for a car, to renovate a home, to pay for insurance, to buy government bonds, to boost your business, for consumption or to consolidate all your loans, Mombo Sacco can help you.
Mombo Sacco leverages on risk-based lending model by use of Mscore that determines a borrower’s loan limit, loan duration and loan interest rate.
Whether you are looking for a car, to renovate a home, to pay for insurance, to buy government bonds, to boost your business, for consumption or to consolidate all your loans, Mombo Sacco can help you.
Mombo Sacco leverages on risk-based lending model by use of Mscore that determines a borrower’s loan limit, loan duration and loan interest rate.
Below are the key pillars of the MOMBO Sacco’s Mscore model:
1. Transaction behavior.
This consists of Utility payments, spend at Till/ Paybill, payment behavior mainly from mobile money history
2. Demographic and Bureau data
A combination of demographic information with product holding and repayment behaviour for existing borrowers.This consists of Utility payments, spend at Till/ Paybill, payment behavior mainly from mobile money history
3. Geo-location data
GPS information coupled with financial transaction behavior.
4. Personal finance Management.
MOMBO Sacco savings history, repayment history, transaction history.
5. App-based data
MOMBO app usage, interactions, texts, e-mails, retail receipts, collection texts to assess the creditworthiness of the customer.
6. Machine Learning and automation of backend through robotics
Continuous feedback for model efficacy and model fine-tuning. MOMBO Sacco savings history, repayment history, transaction history.
MOMBO Sacco for instance uses mobile phone data and e-commerce sales as additional data points for analyzing consumer behavior. Parameters such as long call duration, till spend, frequent high-value mobile top-ups, transactions to certain paybills/ are generally considered as positive indicators, while low-value top-ups, missed savings etc are associated with lower credit scores. We have recently been experimenting with light question/ answer approaches that gauge a customer’s intention to pay—a technique that is especially valuable in the case of thin-file/no-file customers, where other data is scarce, and the customer has saved for a few months.
The use of large data sets that are analysed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions has changed the game for us in 4 key ways:
- Introducing transparency to the transactions. The data obtained from customers helps us customize the price and offering for each individual while on the savings side, we can run discounts by having the system pick early savings for instance, or early loan repayments which earn customers 50% discount on the interest rate charged.
- Eliminated old multiplier approach to what the customer can afford has removed the incessant liquidity challenges faced by traditional Saccos. The customer only qualifies for what they can afford.
- Behavioral patterns picked from the large data sets have enabled us to pick patterns over the years and successfully deploy an offer management system. For instance, in the period towards December, customers have exciting offers to help them save more for holidays or schools fees and at the same time qualify for better loan sizes.
- Consumer behavior has enabled us to customize bite-sized daily saving goals for our customers thereby instilling discipline in their savings culture. Data analytics has assisted in driving customer advocacy and thereby competitive advantage for MOMBO Sacco.
A higher Mscore, between 1-100, where one (1) is the lowest, will reflect a positive CRB rating and financial history, enabling you to access more credit (up to 5X savings) with longer loan tenures and favourable interest rates.By choosing a Mombo Sacco Flexible Savings Account, you are taking a significant step towards building a secure financial future while enjoying the convenience and benefits of being part of an innovative cooperative society.
Below are the key pillars of the MOMBO Sacco’s Mscore model:
Because Mombo Sacco operates as a mobile-first Savings and Credit Co-operative Society, you may be wondering what about loan guarantees. Well, guarantors are not the only way to get loans with the Sacco. There are four ways to go about it;
- Self-guarantee – use of own savings to guarantee a loan of similar value to own savings.
- Self-guarantee and guarantors
- Self-guarantee and collateral (secured by issuing evidence of ownership of personal property such as title deeds and logbooks)
- Self-guarantee, guarantors, and collateral
If you need a guarantor, Mombo Sacco has devised a fraternal system called the M-Community, where members are introduced and facilitated to interact with each other. The interactions allow for personal relationships which aid you in securing a guarantor for your loan. This savings system is only used by members. In case you can’t secure a guarantor, Mombo Sacco management can help in introducing a member to others who will be willing to guarantee them. Guarantors at Mombo Sacco are protected in the sense that they only get to guarantee a part of a loan that they are comfortable with and will form the basis of their liability in that loan. Guarantors’ liability falls as the loan is paid off – with the borrower’s own liability discharged last. It is important to note that loans above one million requires collateral as security in case a borrower’s savings are not sufficient to fully secure the loan. In cases of default, the Sacco will follow up with the borrower to recover the loan, the guarantors will be the last resort. All this is geared towards protecting the guarantors.
Mombo Sacco Loan Facilities
The offering of credit facilities primarily involves loans. Here are the loans Mombo Sacco offers:
1. Quick Loans
These are reliable short-term loans used to cater to emergency personal needs such as medical emergencies, rent, and the likes issued to individual members. They can also cater to cash flow problems. The loans are easily accessible from the Mombo app and repayment period is 1 month.
The loans are unsecured and can be accessed by both employed and unemployed Sacco members who have purchased at least the first instalment of share capital, Bronze is Ksh 5,000, Silver, Gold, Platinum and Emerald is Ksh 10,000 each.
2. Salary Advance Loans
These are reliable short-term loans used to cater to emergency personal needs such as medical emergencies, rent, and the likes issued to individual members. They can also cater to cash flow problems. The loans are easily accessible from the Mombo app and repayment period is 1 month.
The loans are unsecured and can be accessed by only employed Sacco members with at least Ksh. 15,000 of savings. Tap on Apply Loan button to view your loan limit.
1. Quick Loans
2. Salary Advance Loans
These are reliable short-term loans used to cater to emergency personal needs such as medical emergencies, rent, and the likes issued to individual members. They can also cater to cash flow problems. The loans are easily accessible from the Mombo app and repayment period is 1 month.
The loans are unsecured and can be accessed by both employed and unemployed Sacco members who have purchased at least the first instalment of share capital, Bronze is Ksh 5,000, Silver, Gold, Platinum and Emerald is Ksh 10,000 each.
These are reliable short-term loans used to cater to emergency personal needs such as medical emergencies, rent, and the likes issued to individual members. They can also cater to cash flow problems. The loans are easily accessible from the Mombo app and repayment period is 1 month.
The loans are unsecured and can be accessed by only employed Sacco members with at least Ksh. 15,000 of savings. Tap on Apply Loan button to view your loan limit.
3. Insta Loans
This is also a quick cash loans for short term periods offered to individual members. They can be used for personal and business needs.
Their repayment period is within six months and its credit life-insured. Sacco members can borrow up to 5 times their savings based on their Mscore. To access this a member must have saved the minimum amount in his savings plan in the previous month.
Security for the loans can be a member’s savings, guarantors’ savings and/or collateral.Tap on Apply Loan button to view your loan limit.
4. Lifestyle Access Loans
This loan is offered to individual members for long term expenses to cater to large lifestyle events.
This can include weddings, vacations, home renovations, and much more. They have a long repayment period of from 6 months to 48 months (4 years) and are credit life-insured.
Sacco members can borrow up to 5 times their savings based on their Mscore. To access this a member must have saved the minimum amount in his savings plan the within the previous three months.
Security for the loans can be a member’s savings, guarantors’ savings and/or collateral.
Tap on Apply Loan button to view your loan limit.
3. Insta Loans
4. Lifestyle Access Loans
This is also a quick cash loans for short term periods offered to individual members. They can be used for personal and business needs.
Their repayment period is within six months and its credit life-insured. Sacco members can borrow up to 5 times their savings based on their Mscore. To access this a member must have saved the minimum amount in his savings plan in the previous month.
Security for the loans can be a member’s
savings, guarantors’ savings and/or collateral.Tap on Apply Loan button to view your loan
limit.
This loan is offered to individual members for long term expenses to cater to large lifestyle
events.
This can include weddings, vacations, home renovations, and much more. They have a long
repayment period of from 6 months to 48 months (4 years) and are credit life-insured.
Sacco members can borrow up to 5 times their savings based on their Mscore. To access this a
member must have saved the minimum amount in his savings plan the within the previous three months.
Security for the loans can be a member’s savings, guarantors’ savings and/or collateral.
Tap on Apply Loan button to view your loan limit.
5. Imarika Loans
This loan is offered to Chamas, groups or SMEs for long term development projects or asset acquisition.
They have a long repayment period of from 12 months to 48 months (4 years). Chamas can borrow up to 5 times their savings based on their Mscore. To access this a Chama must have saved the minimum amount in their savings plan the within the previous six (6) months. Security for the loans can be a Chama’s savings, and/or collateral.
Tap on Apply Loan button to view your loan limit.
6. Nawiri Loans
This loan is offered to Chamas, groups or SMEs for short term development projects or asset acquisition.
They have a long repayment period of up to 12 months. Chamas can borrow up to 5 times their savings based on their Mscore. To access this a Chama must have saved the minimum amount in their savings plan the within the previous six (6) months. Security for the loans can be
5. Imarika Loans
6. Nawiri Loans
This loan is offered to Chamas, groups or SMEs for long term development projects or asset acquisition.
They have a long repayment period of from 12 months to 48 months (4 years). Chamas can borrow up to 5 times their savings based on their Mscore. To access this a Chama must have saved the minimum amount in their savings plan the within the previous six (6) months. Security for the loans can be a Chama’s savings, and/or collateral.
Tap on Apply Loan button to view your loan limit.
This loan is offered to Chamas, groups or SMEs for short term development projects or asset acquisition.
They have a long repayment period of up to 12 months. Chamas can borrow up to 5 times their savings based on their Mscore. To access this a Chama must have saved the minimum amount in their savings plan the within the previous six (6) months. Security for the loans can be
Mombo Sacco Loan Features available to members from the mobile app
Skip A Pay
We know life occasionally throws unexpected troubles your way, and there are times when you may need a little financial relief. As a courtesy to our members, we offer a skip a loan payment program in times of special need.
- Our skip a payment program does not impact your M-Score rating.
- You can only skip a payment at least ten days before a payment due date.
- Remember that you can only skip on the same loan a maximum of two times per calendar year, and you must wait at least sixty days between skips. Submit your application from Mombo App.
Loan Refinance/ Top up
There are a few conditions, and it has to have been at least 6 months since you took the loan to
be refinanced/consolidated.
Additionally, the loan installments must be in good standing.
Please be aware that a settlement amount is automatically taken from your account when you take out a new loan with us. This means that the remaining balance of your loan, any fees as well as interest due are deducted from your new loan amount.
Loan Consolidation
A member can consolidate two or more existing Mombo Sacco loans. This is important to our members since loan consolidation reduces a member’s monthly payments thereby enhancing their cashflows.
As with your original loan, the application will be subject to our normal credit checks and you can only borrow up to the maximum loan allowance provided by M-Score.
For example: If you borrowed Ksh500,000, and your current limit is Ksh 800,000 then you have up to Ksh300,000 left to borrow.
Please be aware that a settlement amount is automatically taken from your account when you take out a new loan with us. This means that the remaining balance of your loan, any fees, as well as interest due are deducted from your new loan amount.
Loan due date restructure
The day is automatically set to 30 days after your loan is approved, but you’re welcome to pick a
more convenient one.
Things to keep in mind:
- You’ll always need to pick a date that’s at least 3 days in the future.
- There is a convenience fee charged of 1.5% of outstanding principal. We do this to adjust for the change in interest payable caused by the increased number of days from your original repayment day to your new repayment day. (Don’t worry, it’s a one-off! Your repayments won’t be affected.)
- You won’t be able to change your repayment day if: there’s a repayment pending or in progress, or you’ve missed one or more repayments or have defaulted on your loan.
Loan Offset
Mombo Sacco allows members in distress to use their savings to settle an outstanding loan provided the loan balance and loan offset fees are equal to or less than their savings balance. Loan offset fee is 1.5% of loan balance.
50% interest discount – To assist our members, when a loan is opened after 25th March 2020, loan installments settled early would attract up to 50% interest discount. This would enable you save more and in essence allow you to experience the most affordable loans in Kenya. Open a loan account and view the performing installments to identify your 50% interest discount.