Lending to members ยท Lesson 9 of 15

Member loans and guarantors

Amina's Loans tab shows her eligibility, then a Maendeleo Loan of 1,000,000 shillings over 12 months is written for her shop. Halima pledges 400,000 of her savings as guarantor, the loan is submitted, and Baraka checks it in Approvals and approves it.

About 20 minutes

Key ideas

1

Eligibility first

On the member's record, the Loans tab shows SACCO eligibility: Eligible savings, the Multiplier, the Indicative ceiling and what is Available after outstanding loans. In our example, Amina's ceiling is her savings times three, less any loans she already has.

2

Write the loan

Choose New loan and fill in the member, the product, the amount, the term and the purpose: in our example Amina, Maendeleo Loan, 1,000,000 shillings over 12 months, for her shop. Check the schedule and the cost of credit before you choose Create loan.

3

A member guarantor

On the loan's Security tab, open Add member guarantor, choose the member and enter the Pledge amount from their savings: here Halima pledges 400,000. Tick the box only when the guarantor has received and accepted the written disclosure, then choose Add guarantor. The count shows how many are pledged and how many are required: here, one pledged, one required.

4

Submit and approve

When the required guarantor has pledged and the required documents are on file, here Amina's NIDA, the loan shows Ready to submit. Choose Submit for approval and it shows Pending. A second person, here Baraka, checks the amount, the guarantor and the documents in Approvals and chooses Approve, and the loan is Approved.

Practice

Try it in your training organization

  1. 1. Open the training member's record and read SACCO eligibility on the Loans tab.
  2. 2. Choose New loan, pick Maendeleo Loan and enter an amount within the ceiling, for example 1,000,000 over 12 months, with a Purpose.
  3. 3. Check the schedule and the cost of credit, then choose Create loan.
  4. 4. On the Security tab open Add member guarantor, choose a second training member and enter a Pledge amount from their savings.
  5. 5. Tick the disclosure box once the guarantor has read it, choose Add guarantor, and check the pledged and required count.
  6. 6. When the loan shows Ready to submit, choose Submit for approval and check that it shows Pending.
  7. 7. Sign in as a different user who checks loans, open Approvals, check the amount, the guarantor and the documents, and choose Approve.

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