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Loan Amortisation Schedule
EMI for a Reducing Balance Loan
Loan Amount
Months
After Insurance(0.1%)
Background
Concord Savings and credit Co-operative Society was registered in 1978 under CS/NO 3061, as  a SACCO whose members are drawn from various airlines, travel agencies and other travel related organizations, such as  various International airlines operating in Kenya. Its offices are situated at the 3rd floor of Centenary House in Westlands, Nairobi Kenya

As at 31st August  2013 membership was 1455 members drown from Twelve  (12) Airlines, Ninety  four (94) Travel Agencies and Ten (10) handling companies. Share capital was Three Hundred and Eighty  million (380 million) and loans granted to members was Three  hundred and Seventy one million (371 million). The society is governed by 9 elected officials and a supervisory committee that consists of 3 members.

 The operations of the SACCO are conducted by 5 staff members who are headed by a Chief Executive Officer. The Board is responsible for hiring, appraisal and dismissal of staff. However, the board is not involved in the day to day loan appraisal process which is currently being done by staff. Board members approve and also ratify loans after they have been disbursed.
The Society’s main aim is to promote the economic interests of members by encouraging thrift through the mobilization of deposits, savings and investments. Concorde SACCO is one of the well recognized SACCOs in Kenya. The Society collaborates with such organizations as the Co-operative Bank of Kenya, KUSCCO and the Co-operative Insurance Company.

Methodology
Concorde’ SACCO Society uses a delivery model that is based on the accumulating savings and providing credit to the members.  In the lending methodology Concorde’ SACCO Society uses the individual guarantee system where a member borrowing is guaranteed by members of the Society and groups act as guarantors to individual members. Members contribute deposits every month and the unwithdrawable deposits act as security of the loan taken by members.
Concorde SACCO society, however, intends to broaden its capacity of lending by considering the formulation of appropriate policies and procedures.

Organization
Concorde’ SACCO Society members are dealt with by the Society as individuals, and attend and vote at its meetings through the Annual General Meeting. The members obtain savings and credit delivery, relevant information and education. The Society is fully accountable to the members over its resources and this enhances credibility to the membership that it serves. The delivery methodology is geared towards innovative ways of bringing financial services to the members and other entrepreneurs in the business sectors at competitive and sustainable rates.

Ownership and Governance    

The Society is governed by nine Board of Directors and three supervisory Committee members responsible for monitoring the performance of the SACCO operations and service outlets.  The Board members are elected by the members at the Annual General Meeting.

The role of Management staff includes but not limited to the following:
  • Execution of Board of Directors decisions
  • Facilitation of preparation of operational plans and budget
  • Implementation of program activities
  • Development of staffing in line with Society policies
  • Management of savings and credit portfolio
  • Day to day running of the organization resources (assets, human, and financial resources)
  • Liaison with strategic partners to ensure levels of authority are adhered to
  • Maintaining the image of the organization and public relations

Concorde’ SACCO Society conducts education and training of the Board members, members and staff.  .
 
Products and services
The SACCO currently operates a BOSA section which offers members the following products:

CATEGORY A ‘LONG TERM LOANS
LOANS               INTEREST RATE       PERIOD        
NORMAL            1%                    60MONTHS    
BRIDGING          1%                    60MONTHS    
DEVELOPMENT     1%                    60MONTHS    
CONCORDE 60     1%                    60MONTHS  

(Must be fully guaranteed by shares, collaterals :Land /Motor Vehicle )
CATEGORY B SHORT TERM LOANS
EMERGENCY             
Features :
  • Rate-     1%                
  • Period -    12MONTHS
  • Security – Must be fully guaranteed

INSTANT
Features:
  • Rate-     3%                        
  • Period -    6MONTHS
  • Maximum – Kshs 100,000
  • Security – NONE
  • Approval daily
  • Mpesa payment mode
CATEGORY C SIGNATURE LOANS
NAME       MAX           RATE           PERIOD            GUARANTORS  

CON18    100,000    1.5%       18MTHS           4 SIGNATURES  
CON24    150,000    1.5%       24MTHS           6 SIGNATURES
CON30    200,000    1.75%     30MTHS           8 SIGNATURES
CON36    300,000    2%          36MTHS          10 SIGNATURES
FUNGUO  500,000    2%          48MTHS          15 SIGNATURE

THE LOAN PROCESS
QUALIFICATION FOR LOAN

  • Member must have completed at least six months membership
  • Member qualifies four (4) times his/her shares contributed, but subject to a maximum of 5% of the society’s total share capital and reserves.
  • Total deductions must not exceed two thirds of a member’s regular salary.
  • A member can service more than one loan product simultaneously.
2. REQUIREMENTS WHEN APPLYING
  • The loan application and agreement form:
  • Must be duly completed in duplicate and signed by the applicant
  • Any alteration must be counter signed for
  • Amount, repayment amount , period and commencement date must be indicated
  • Must be signed by a witness, who is a member of the sacco
  • Must attach two (2) latest pay slips (originals)
  • Guarantors must personally indicate the amount they are guaranteeing and confirm by signing the loan application form
  • Employer must acknowledge that:
  • The applicant is their employee
  • The position/title held by the employee
  • Work station location
  • Name and address of employer
  • Stamp and sign form
  • Undertake to deduct & remit to the society all such that may be instructed by the society for the said loan.
3. APPROVAL AND PAYMENT DATE
Loans are approved on Tuesdays and payments are made on Thursdays through the EFT system. (Members should forward their application to the office by Monday 4.30pm)

4. LOAN PRODUCTS CURRENTLY OFFERED
A. LONG TERM LOANS
  • Normal, Bridging and Development Loan
  • Maximum repayment period – 48 Months
  • Interest Rate -1% compound interest, which translate to 6.5% simple interest.
  • Must be fully secured by shares and guarantors.

B. SHORT TERM LOANS
  • School fees and Emergency loan
  • Maximum repayment period – 12 Months
  • Interest rate- 1% compound interest, which translate to 6.5% interest
TOP - UP LOAN
FEATURES
  • Maximum amount of top-up Kshs. 500,000.00
  • Kshs. 100,000.00, A member can apply for a top-up of Kshs. 300,000.00
  • No guarantors required.
  • Same interest rate as the original loan.
  • Same repayment period and amount.
  •  Must be within 4 times qualification i.e. total loans including top-up must not exceed four times shares.
  • A member can get only one top-up loan. To qualify for another, one must clear the existing top-up.
  • No top-up on seasonal loans.
  • A service fee charge of 2.5% of the top-up amount.
D. SEASONAL LOANS
  • Include: Concorde Funguo, Con 18,Con 24, Con 30 Con 36 .
  • Based on the concept of ART
  • Members pledge guarantee by signing the application form that incase of default they can be called upon to pay
KEY POINTS ON GUARANTTEING        
  • Once you guarantee you tie those share until the loan is fully cleared
  • It is important you have an understanding and be wise when guaranteeing. Don’t be mean to your colleagues
  • It is possible to be released before the loan is fully cleared since the Loanee accumulates free shares while repaying the loan.