...

Loan Collateral

Don’t get stack because you can’t find guarantors. There are other collateral’s acceptable by Remican Sacco as below.

Guarantors

  • A member can guarantee up to 2 people.
  • The guarantor must be in good standing (must not be in default /loans guaranteed by them
    must be performing).
  • Requirements from the guarantors fill the guarantor ship form and attach the ID copy.

Land collateral Pledge

This constitutes land within Kenya and fully owned by the member or his/her spouse. A lien shall
be established with guarantor.

  • Value

80% – For Nairobi and its environs and 60% for other areas Value of acceptable land based on valuation report shall be considered adequate for loan.

  • Application Requirements
    • A search of the land must be done .The certificate of the official search must be availed for documentation and confirmed by the Society credit committee.
    • An application for consent from the National Land Commission must be made.The letter of consent must be availed for documentation.
    • The land valuation report shall be issued directly to Remican Sacco by the value.
    • All Government fee pertaining to the property must have been paid up to date and a confirmation certificate/receipt documents availed to the society.
  • Changing of Property

After the member has availed all the necessary documents the society shall advice the members to pick a lawyer from the pool of lawyers approved by the society to undertake the changing of the property.

    • A change must be prepared by a lawyer. The change documents must be signed by the mandated signatories of the society and sealed.
    • Property must be insured.
    • The change must be done at the land’s offices and a certificate of the official search showing that the property has been changed to the Sacco availed to the society.
  • Land Check List

The borrower is required to provide the following documents to facilitate:

    • Original title documents of the parcel of land.
    • Original and copies of borrower’s pin and ID cards.
    • 3 recent passport size photographs of the borrower.
    • Land valuation report.
    • Postal address,telephone and e-mail address of the borrower.

In case the borrower is married he/she is required to provide the following;

  • Provide copies of the spouse’s Pin and ID card.
  • 3 recent passport size photographs
  • Duly executed spousal consent ,in case the borrower is not married he/she is required to swear an affidavit to that effect.

Motor Vehicle Collateral Pledge

This constitutes motor vehicle not more than 10 years of age from the date of manufacture.

  • Only comprehensively insured motor vehicle shall be acceptable as collateral for loan.
  • Valuation of vehicle shall be done by registered valuer appointed by Remican Sacco and valuation report submitted directly to the Sacco.
  • Upon approval of the the loan the ownership of the vehicle shall be registered jointly between the borrower and the Sacco.
  • The value used to secure loan is 50%.
  • Motor Vehicle should nor be more than 10 years of age from date of manufacture .To facilitate joint registration of motor vehicle between the member and the Sacco ,the borrower shall avail the required documents to the Sacco office together with the loan application.

Changing /Joint transfer of motor Vehicle

After the member has availed all the necessary documents.The change must be done through NTSA Tims and a certificate of the official search showing that the motor vehicle has been changed to the Sacco availed to the society.

Log Book Check

The borrower is required to provide the following documents:

  • Original logbook in the name of the borrower.
  • Copies of borrower’s PIN and ID cards.
  • 3 Recent passport size photographs of the borrower.
  • Copy of valid insurance cover.
  • Letter of consent in case the documents belong to the other e.g spause.

Log Books By Third/Spouses ,the Society will expect the following.

  • Endorsement letters
  • Identification Card ( ID) of the owners.
  • Certificate of registration in case of a registered legal entity.
  • Pin Cards for both the endorser and the applicant.
  • ID card for both the endorser and the applicant.

NB : For married people where family items are used to secure a loan . It is important for the spouse of the borrower consent to the loan.

SUBSTITUTIONS OF SECURITIES

To ensure that the Sacco’s position is not weakened as a results of substitution of securities;

  • Once a loan has been approved, no substitution of one security for anther may occur without approval of the credit committee responsible for its original approval.
  • Substitution of any security may only occur after a new assessment process.
    This will be followed by writing of a new letter of offer and fully perfection processes.

Fixed Deposit Collateral

This shall consist of fixed monetary amount in Kenyan currency held in the society up to 100% value of the deposit at the time of loan May be offered as collateral.

The requirements shall be as follows.

  • Such deposits once committed as collateral shall be locked and shall therefore not be available for withdrawal ,transfer for any other purpose until the loan and interest so secured is cleared in full.
  • The member shall be required to do a letter instructions the Sacco to use fixed deposits in securing a loan.
  • The fixed deposit held after maturity shall continue earning interest.

Guarantors

A Member can guarantee up to three loan including their own loans.

  • The guarantor must be in good standing and if they have guaranteed loans thy should be in good standing.
  • Fill the guarantor ship form and attach the ID Copy.
  • Our head office is located at Mariira.
  • Sub- branch at Gakira shopping center

Happy or unhappy?

We value your feedback.

Contact us
Seraphinite AcceleratorOptimized by Seraphinite Accelerator
Turns on site high speed to be attractive for people and search engines.