Date: August 26, 2024
REF: BALOZI SACCO PRODUCT REFORMS
Dear Member,
The Board of Directors of the SACCO is pleased to announce several updates to our loan products, tailored to better meet the needs of our valued members. The following changes will take effect from September 1, 2024

1. Insurance Premium Financing Loan

• We have introduced a new product to assist members in paying insurance premiums for their vehicles.
• The maximum amount is determined by the lesser of the repayment ability or the insurance premium.
• The repayment period is 12 months.
• The interest rate is 1% per month on reducing balance.
• Eligibility is calculated based on half of the net salary.
• Repayments can be made via checkoff or standing order.
• The loan can be bridged.
• Loan disbursements are made directly to the insurance company.
• The loan is exempt from the deposit multiplier.

2. Okoa loan

• The maximum amount has been increased from Ksh 350,000 to Ksh. 500,000.
• The repayment period has been extended from 12 months to 24 months.
• The interest rate is 1.2% per month on reducing balance.
• Eligibility is calculated based on half of the net salary.
• The loan can be bridged.
• The loan is exempted from the deposit multiplier.

3. Car loan

• The maximum amount has been increased from Ksh 3,000,000 to Ksh 3,600,000.
• The repayment period has been increased from 36 months to 48 months.
• The interest rate is 1.2% per month on reducing balance.
• Loan disbursements are made directly to the car vendor.
• The loan is exempted from the deposit multiplier.

4. Ekeza Savings Product
The Ekeza savings product is a flexible, withdrawable savings designed for both individuals and chamas (both registered and unregistered savings group).

• The interest rate on this product has been increased by 1%, bringing the maximum annual interest earned on savings to 12%

NOTE: All other terms and conditions for savings and loan applications remain unchanged.

We trust these reforms will enhance your experience with our services. Should you require any clarification, please do not hesitate to contact us.

Yours faithfully,

Jorim Oyago
Chief Executive Officer
BALOZI SACCO LTD