TO: BALOZI SACCO MEMBERS

DATE: 24^th NOVEMBER 2025

SUBJECT: REVIEW ON LOAN PRODUCTS

Balozi SACCO Ltd is committed to continuously improving its credit facilities to support its members’ financial needs. The SACCO is pleased to announce the following changes:

1. Use of Money Market Fund (MMF) as security/guarantor for loan

   How will it work?

• MMF will secure/guarantee loan(s) up to 80% of its value e.g. if the value of MMF is Ksh 1M, then the guarantorship will be upto (Ksh 1 M*80%) Ksh 800,000 only.
• A certified MMF statement will be required to confirm the amount qualifying as security.
• Confirmation from MMF company on the amount charged to the SACCO will be required.

   Note: Loan will be processed on the current terms and conditions. The MMF unit will only be used as a

   security/guarantor for the loan until the loan is fully paid.

2. Default loan

   Guarantors have a choice to pay defaulter’s loans through the default loan product or the amount to be

   deducted from their deposits.

   Features of the product:

• Repayment period has been extended from 48 months to 96 months
• The loan is interest free
• Guarantor can pay the loan through allotment or standing order.
• The amount allotted towards repaying defaulter’s loan doesn’t affect guarantor’s eligibility.

Illustration: if the guarantor’s 2/3rd is Ksh 15,000, and another additional allotment of Ksh 5,000 is done towards the default loan repayment, this additional (Ksh 5,000) will not reduce the 2/3rd hence the loan eligibility will still be based on the Ksh 15,000 but not (Ksh 15,000-5,000) Ksh 10,000.  

• Guarantor must specify the preferred repayment period in writing.

3. Loan restructure

The SACCO has introduced loan restructure to allow for amalgamation of existing loans in arrears and start repaying them with new terms and conditions.

     Features:

• Repayment period: 120 months.
• Take-Home (net amount) is zero.
• Interest rate is 14.5% per annum on reducing balance

Thank you for your continued trust and cooperation.

Regards,

Jorim Oyago

Chief Executive Officer