1. Who is eligible to access Ndege Chai Sacco loan facilities?

Members admitted in accordance with the membership policy.

2. When does a member become eligible for a loan?

A member becomes eligible after a minimum membership period of six (6) months and on fulfilling all requirements of a specific loan product. Members who transfer their deposits from another Sacco are exempted from the waiting period.

3. What do I need when applying for a Loan?

  • A fully completed loan application form.
  • Attach 3 most recent pay slips.
  • A copy of an acceptable form of identification (National ID/Valid Passport).
  • Guarantors should be active members and have contributed for at least three months. Guarantors and applicants shares MUST be equal to or more than the loan applied for.
  • One must have been an active member for at least three consecutive months

4. How is a loan application made?

A loan application must be done in writing on prescribed forms which must be fully filled. The applicant must attach all relevant documents. Alteration will not be allowed.

5. What loan products are offered by Ndege Chai Sacco Society Ltd?

  • Normal/Development Loan – Maximum 60 months – Interest 13% p.a-reducing balance
  • Additional Loan –  Maximum 60 months – Interest rate 13% p.a-reducing balance
  • Emergency Loan – Maximum 12 months – Interest rate 13% p.a-reducing balance
  • Salary Advance – One (1) month – Interest rate 6.5% p.a.
  • Jipange Loan –
    • Maximum 4 months – Interest rate 4% per month
    • Maximum amount – Amount depends on net salary
    • Minimum amount – Amount depends on net salary
    • Is applied online
    • Is a FOSA (salary-based) product

Please Note:

  • All our loans are formulated on a reducing balance and every loanee meets 1.5% of the insurance cost of their loan.
  • Normal and additional loans will be paid within 30 days
  • Emergency Loan is processed from one day to a maximum of a week
  • Jipange loan is processed within few minutes of online application.
  • FOSA salary advance(online application) will be processed under 5 minutes.

6. What is the difference between Shares, Deposits and Savings?


  • A share is the amount representing a member’s portion in the equity of the society as a co-owner.
  • The nominal value of each share shall be Kshs.100/= and every member shall hold at least fifty (50) shares in the Society, but no member shall hold more than one-fifth of the total shares.
  • No member other than the Cooperative Society shall hold more than one-fifth (1/5) of the total shares
  • Shares are not used to determine the eligibility of a borrower or a guarantor; shares are not used as a loan multilplier
  • Shares are not withdrawable but are transferable.


  • All withdrawable deposits shall attract interest at a rate prescribed in the terms and conditions of the deposit.
  • They are not withdrawn in part or in full as long as a person is a member of the Sacco.
  • These deposits may be used to determine the eligibility of a borrower or a guarantor.
  • A member may be refunded the amount saved in his non-withdrawable deposit account within 60(sixty) days after giving a written notification.
  • Non-withdrawable deposits shall attract interest at a rate to be determined by the Society.


In addition to shares and deposits a member may invest in a saving account.  The Sacco provides the following FOSA (savings) products:

  • Personal Accounts
  • Children Accounts
  • Fixed Deposit Accounts
  • Chistmas / Holiday Accounts
  • Joint Accounts
  • Group Accounts
  • Akiba Kuu Account

7. Does interest charged by the Sacco fluctuate during the term of the loan?

No. Any amendments on interest will affect new applications only.

8. Who decides on what interest to charge?

Interests on loans are reviewed from time to time by the BOD on recommendation of Management.

9. Can a member capitalize interest rebates or dividends to boost one’s shares?

Yes, that is allowed. All that one needs to do is to instruct in writing.

10. Can a member use dividends or interest rebates to clear loans?

Yes by communicating the same in writing.

11. If a member clears a loan before its completion date will he/she be required to pay interest for future periods?

No interest or penalty is charged for clearing a loan earlier than the contracted period.

12. What are the acceptable Securities for a loan?

  • Guarantors
  • Deposits in the SACCO
  • Land title deeds
  • Bank guarantees
  • Corporate guarantee
  • Vehicle Log book

13. Must I have guarantors when applying for a Loan ?

Yes indeed. Loans granted by the society must be fully guaranteed by members of the society. Guarantors and applicants shares MUST be equal to or more than the loan applied for. In special cases when loan is less/equal to shares one could guarantee him/herself.

14.Can I offset my deposits against my Loan?

A member is only allowed to offset his/her deposits against his/her loans if he/she is ceasing to be a member. He/She must then pay off the balance immediately if any. Offsets are only done when a member has asked those he/she has guaranteed to seek for guarantor replacements.

15. Can I apply for more than one Loan?

A member is allowed to take any loan products from different categories on offer as long as all lending conditions are met.

16. Who is eligible to be a guarantor?

Any active member in good standing is allowed to be a guarantor provided that one has not over guaranteed. A guarantor must be willing and able to repay the loan guaranteed if the person who took the loan fails to pay.

17. What is the role of a guarantor?

Guarantors are jointly (together) and severally (individually) liable for the repayment of a loan in the event of the borrower’s default.

18. What are the rights of a guarantor?

  • The right to obtain a copy of the letter of guarantee or contract of guarantee and any other documents in relation to the loan transaction.
  • The right to the information on the outstanding balance of the account of the borrower with the Society subject to the borrower’s consent.
  • The right to call upon the borrower to pay off the loan to release him from all his liabilities under the guarantee. This right can be exercised at anytime and even before the Society has called upon the borrower to pay the debt.
  • The right to be indemnified by the borrower for any payment made to the Society. This means that he can sue the borrower for the amount that he has paid to the Sacco.

19. What does a borrower need to know about the loan she/he is guaranteeing?

  • Loan amount
  • Repayment period
  • Applicant’s source of income
  • Applicant’s term of employment
  • Applicant’s retirement date
  • Any other details relating to the applicant’s character

20. What disbursement channels do you offer?

  • EFT (Electronic Funds Transfer)
  • RTGS (Real Time Gross Settlement)
  • Cash withdrawal from the teller
  • M-PESA
  • ATM
  • M-Banking(M-Ndege Service)

21. Can one clear a loan in full before repayment is over?

Yes, that is allowed and does not attract early clearance charge.

22. Who is a nominee?

  • A nominee is the person designated by a member to receive the proceeds of any payable funds upon the death of the member
  • All members are required to provide details of nominee(s) upon registering as members.
  • One can change and/or update his/her nominee information as when and need arises.

23. What are the other services offered by the Sacco?

  • ATM Service-we are connected to Co-operative Bank’s Sacco Link Network. Members can access their cash at any Co-operative Bank ATM countrywide and any Visa Branded merchant outlets anytime 24/7.
  • M-Pesa-We receive and send cash through our M-Pesa outlets. Members can also deposit their FOSA accounts, make loan repayments and savings using the pay bill option of the M-Pesa using Ndege Chai business number 637 637.
  • Safe Custody of valuables;
  • Banker’s Cheques;
  • M-Banking;
  • Cheque clearance;
  • Financial advice;
  • Salary Processing;
  • Dividends’ Re-investment;
  • Offsetting Loans;
  • SMS Banking;
  • Asset Finance(Car Loan).

24. What do I need to do when leaving / resigning from the society?

  • A member needs to inform the society in writing of his intention to withdraw. This is done by filling a withdrawal form which are readily available at our offices.
  • A member needs to inform all loanees he/she has guaranteed so that they seek alternative guarantor(s). Refunds will only be paid to the member after all loanees have replaced the withdrawing member as guarantor. If the member has guaranteed any other outstanding loan, he/she will fill a substitute guarantors form available at our offices. The same form is signed by all the other two parties (outgoing and incoming guarantor(s)

25. How do I open a FOSA account?

All our members automatically get a FOSA account upon joining our membership.

26. How can I acquire a Ndege Chai Sacco ATM/ Visa Card?

Our ATM Cards can be obtained by all members after making an application at any of our satellite offices/ branches.

27. Who can qualify for an ATM card?

Any member operating a FOSA Account qualifies for an AT M card.