This is loan given to help a member acquire business assets, Motor vehicles and land/ properties.
Asset financing loan shall have following features;
- Loan shall be given 2-4 times member savings.
- The loan shall only be given to meet purchase price other related cost shall be borne by borrower e.g. valuation and legal charges.
- The asset shall be used as security of loan and therefore will be registered under EPA Sacco ltd.
- Interest rate for the loan is @ 1% per month on reducing balance for loan amount exceeding 1 million and 1 % per month on flat rate for loan less than 1 million.
- Period of payment shall be; 0-400,000ksh-24 months, 400,000-1M ksh-36 months,1-3 million 48 months,3-6 million ksh -60 months,6 million and above 72 month.
- The loan shall be insured at rate of 0.99% of the principle amount per year.
- Collateral discharge process requires member to apply for release of security from the SACCO upon clearing the loan.
