CHUNA SACCO SOCIETY LIMITED

UNIVERSITY OF NAIROBI
P.O. BOX 30197-00100, NAIROBI TEL: 318262 ext. 28332/0733809421/0705951672
Email: chunasacco@yahoo.com/chunasacco@uonbi.ac.ke
Website: http//chuna.uonbi.ac.ke
VISION: To be the leading SACCO Society providing quality and dynamic services to our
CHUNA TUNDA members’.

Batch No………………………………………………… Date Received:…………………….………………

LOAN APPLICATION AND CONTRACT FORM

APPLICANT’S DETAILS (Please fill in appropriately)
UON/PR
No. Member No. Mobile No.

FOSA Account No: Date of Application

PART 1: APPLICANT’S PARTICULARS – Attach a copy of ID (Please fill in appropriately)

1.1. Name: ……………………………………………..……………………………..ID No: …………………………………Date of Birth: ………….………………

1.2. Home address: ………………………………………………………………………………………City/Town:……………………………….…………..…………

County: …………………….…………....…….…Nearest institution to home: ………………………………………………..……………………………

1.3. Source of Income: Salary/Business/Others…………………………………………….…... Occupation……………………………….…….………..

1.4. Employer: ……….…………………………………………..…………...Work Station …..………………………………………………………..……………..…

Postal address: P.O. Box ………………………………. Postal Code…………………………City/Town…………………………………..……………..

1.5. Terms of Service: Permanent/Temporary/Contract/Others (specify)…………….…………………………….…………….……………………

1.6.KRA PIN: …………………………………………………….. E-mail: ……….……………………………………………………………………..…..……………….

PART 2: LOAN PARTICULARS/LOAN TYPE (Tick the appropriate box)

2.1. I ………………………………………………………………………………………….……………wish to apply for KShs .…………………………………………
In words ………………………………...……………………………………………………………………………………………………………………….……………..
For a period of ............................. Months (Specify if a lesser period than indicated below).

2.2. Type of loan and period

Normal loan 60 Months Normal loan 24 Months FOSA Loan- 12 Months

Normal Loan 48 Months Emergency Loan 12 Months Salary in Advance-12Months

Normal Loan 36 Months School Fees Loan 12 Months Salary Advance- 1 Month

2.3. Purpose of the Loan: …………………………………………………………………………………………………………………………………..

……………………………………………………………………………………...
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PART 3: LOANS TO BE CLEARED BY CHUNA
3.1. I wish to apply for FOSA clearance on my loans as indicated below:
Outstanding Loan Amount
i)
ii)
iii)
iv)
NOTE 1: Bank and other institutions loan(s) to be cleared must be supported by a statement showing the current balance to be
cleared, the Bank Early Repayment Fee (ERF) and the Bank Loan Account Number.
NOTE 2: After receiving the banker’s cheque to clear your bank loan you are expected to send back a Bank Nil
Balance statement before the difference can be paid out to your FOSA account.

3.2. Send the Banker’s Cheque for collection through FOSA Loan Account Number: …………………………………..…..………………………
PART 4: GUARANTORS
(MUST be signed by the guarantor him/herself and should have known the Loan amount being applied for or
guaranteed).
“In consideration of granting the above loan or any lesser amount that may be approved, we the undersigned hereby accept jointly and
severally the liability for its repayment in the event of borrower’s default. We understand that the amount in default may be recovered
by an offset against our deposits in the society or by attachment of our property or salary and that we shall not be eligible for loans
unless the amount in default has been cleared in full”. Note - any single default in loan repayment shall attract 6% p.a penalty on the
outstanding balance and shall accrue for every month defaulted.
S/NO M/NO. PF/NO. NAME OF GUARANTOR AMOUNT MOBILE SIGNATURE
GUARANTEED NO.
1
2
3
4
5
6
7
8

Note 1: Normal Loans must have eight (8) guarantors and the rest four (4) guarantors. This rule may be
waived if remaining amount (after some guarantors have signed) to be guaranteed will be equal to
the deposits plus payable interest.
Note 2: Self guarantee - possible on condition that the deposits are more than or equal to the loan plus
interest and one has not committed the same shares on guaranteeing others.
PART 5: PERSONAL COMMITMENTS AND DECLARATION
5.1. I further pledge ................................................................................... as additional security for the loan so approved.

5.2. I authorized you to: (Please delete whichever is not applicable)

a) Reduce / increase my share contribution to……………………..……………………………………………………………………………………..

b) Retain my share contributions…………………………………………………………………………………….…………………………………………..

5.3. (a) I hereby declare that the foregoing particulars are true to the best of my knowledge and belief, and agree to abide by
the by-laws of the society, conditions, and terms of loan policy and variations by the Credit Committee. I also consent
to be referenced upon this application in the Credit Reference Bureau (CRB) and be listed in the same in case of
default. I release CHUNA Sacco and its officers, employees and agents from any claims, actions or proceedings of
whatsoever nature and howsoever arising, suffered or incurred in connection with CRB sending/ delivering/emailing
my credit report to the addresses that I have provided.
(b) I also without any reservation whatsoever allow CHUNA SACCO to auction any of my properties in
case of defaulting to repay this loan once I have accessed it.
I hereby authorize the necessary deductions to be made from my salary for repayment of the loan.

Name: ……………………………………………………..………………………Signature: ………………………………………Date: …………………

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 PART 6: GENERAL TERMS AND CONDITIONS FOR LOANS
6.1. Application must be made on the official loan form fully completed and appropriately signed by
both the loanee and guarantors in their own handwriting.
6.2. The applicant is required to attach original pay slip (not more than one month old to the date of
application).
6.3. Loans are granted in accordance with the loan policy and lending conditions existing at the time of
application.
6.4. For a member to qualify for a loan consideration, he/she must have contributed shares for a minimum
period of six months subject to the policy in force.
6.5. Any amount of money deposited by a member either in cash or by cheque to boost shares shall wait for
six months, or pay
10% of the boosting amount, before that amount can be used to secure a loan.
6.6. A member whose share contributions or loan repayments have fallen off the payroll but has continued
repaying his/her loan and is in need of a new loan will be required to update his/her shares and loan
repayment account by repaying in cash or authorize an offset from loan of an equivalent amount of the
arrears.
6.7. Any member who clears his/her loans by cash/cheque before end of repayment period must wait for 2
months before being considered for a loan and subject to the policy in force.
6.8. Guarantors must be members of the Society who shall not guarantee more than twice of their savings.
6.9. The prevailing interest rates at time of application shall apply. The interest rates shall however be
reviewed by the Board of Directors from time to time and the same communicated to members.
6.10. Emergency and School fees loans will attract a processing fee of Kshs 200 on any amount applied.
Whereas all Normal loans will attract a processing fee of 0.5% of the amount approved. All appraisal fees
will be recovered up-front.
6.11. Members on short term contract terms of employment to be granted loans at 80% of their deposits if
they do not have a renewed contract. Whereas, those with a contract will be granted and recovered
loans within their contract period.
6.12. The loan amount applied for shall be fully covered by the loanee plus guarantors deposits.
6.13. Minimum share contribution for those with loans shall be determined by the share banding on the
amount approved.
6.14. A member who has been dormant for a period of 3months shall not be considered for any loan.
6.15. Minimum share contribution for members without loans is KShs. 2,500.00 per month and/or subject to
policy in force.
6.16. Loans shall be appraised based on 3 times of members’ savings and ability to repay. The applicant must
always remain with at least one third (1/3) of basic salary as NET PAY after all deductions have been
made.
6.17. Members can take a top up loan in addition to existing loan without necessarily clearing the
outstanding loan subject to ability to pay. A top up interest of 10% shall be charged on outstanding
balance and recovered upfront.
6.18. All Loans shall be paid to member’s FOSA account.
6.19. If a member decides to cancel his/her loan after the process has been finalized, a fee of 10% of the
amount applied for shall be charged.
6.20. No alteration whatsoever will be allowed on the loan form.
6.21. Loan Insurance fee is charged at 1.8% of the granted Loan amount and is recoverable upfront.
6.22. For recovery of the loan and interest thereto, the applicant must present evidence to the SACCO of
IRREVOCABLE STANDING ORDER or DIRECT DEBIT INSTRUCTIONS from her/his bank.
6.23. The SACCO reserves the right to involve the services of registered debt collectors and auctioneers to
recover any amount arising from default.
6.24. The SACCO may accept collaterals from loan applicants. The loan applicant shall bear all the costs
pertaining to the collateral being acceptable and charged.

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PART 7: SPECIFIC TERMS AND CONDITIONS FOR FOSA LOANS
7.1. To qualify for FOSA loans including Salary Advance (which is 80% of net pay) and Salary in Advance
(payable within one year and which is 60% of basic pay), your salary must be permanently passing
through CHUNA FOSA. Any relocation must be approved by CHUNA in writing in case you have a FOSA
Loan.
7.2. The University must commit in writing that your salary will be passing through CHUNA FOSA and for any
change, CHUNA must approve in writing.
7.3. Member must attach a certified copy of the employment or contract letter.
7.4. To qualify for FOSA loans, your salary must have passed through CHUNA FOSA at least for three months
consecutively.
7.5. The full loan amount must be guaranteed by CHUNA active members.
7.6. Refinancing of FOSA loans can only be done after three months of consecutive repayments.
7.7. FOSA Loan interests, applicable at time of FOSA loan application, shall be recovered up front.
7.8. A Standing order shall be effected in Applicant’s FOSA A/C immediately after disbursing a Salary Advance
or Salary in Advance Loan.

Acceptance of the terms and conditions contained in this agreement shall be indicated by the
applicant providing the Sacco society with the original of this loan contract duly signed as
evidence of acceptance of the terms and conditions as stated.

Signed by the Applicant: Name………………………………………………..………………………………………

ID CARD No.:……………………..………………
Signature: …………………………………….…………………………...Date: ……………………………..………..………………
In the presence of: Name ………………………………………………………….……………………M/No.: …………...……… P/R
No.: ………...………
Signature……………………………………………………………………Date
………………..……………………………………….
CHUNA Official: ……………………………………………………….…….Signature …………………………………….Date

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