Mwalimu Sacco Memo On Vuna Advance Facility And Extention Of Mobile Loans Repayment Period

This is further to the circular Ref: MW/2265/AD/47A dated 02nd April 2025 and the Board of Directors' approval in its meeting held on 1st April 2025. The following credit policy interventions were considered towards enhancing members' financial access while promoting the SACCO's sustainable growth, in line with its 2024-2026 corporate strategy under Key Result Area of "Strengthening the Core business."

VUNA Advance facility

Intervention 6: Introduction of the VUNA Advance facility. Members will be able to access this product, secured by anticipated Dividends & Interest rebates for the financial year 2025 to be approved and settled in early 2026 with effect from 1st May 2025, subject to the following terms and conditions:
1. The advance can be accessed through the Mwalimu HELA platform via the mobile App or by dialing USSD *633#.
2. Members will access up to 25% of the net earned interest rebates from the previous financial year ending 31st December 2024, based on their deposit balances at that time.
3. A competitive monthly interest rate of 1.25% will be applied to the amount advanced for the entire duration of the facility, subject to standard eligibility criteria.
4. Members with any outstanding arrears or in default on any of the Sacco lending products and or liability will NOT be eligible unless they regularize their accounts.

Extension Of Mobile Loans Repayment Period

Intervention 7: Revised terms for Mobile Loans. This has been reviewed and enhanced as follows:
1. Loan tenure has been extended to a maximum of six (6) months.
2. Members shall only hold one active Mobile Loan (M-loan) at any given time.
3. Members may now select a loan duration ranging from one (1) to six (6) months, depending on their preference.
4. A top-up fee of 2% shall apply if there is an existing balance and a member seeks a higher amount.
5. A favorable interest rate of 7% on a reducing balance will be applicable.

6. The maximum loan amount available under this product is KES 100,000, subject to the lending policy governing this product.

We do believe these interventions will provide greater financial flexibility for our members while upholding Sacco's commitment to responsible and inclusive lending. Your continued trust and patronage remain vital in our journey or renaissance as we work together to build a stronger, more resilient Mwalimu National.

from
Kenneth Odhiambo
CHIEF EXECUTIVE OFFICER.
Mwalimu National LTD