KUSCCO Housing Fund

With a well-founded need to provide housing as a basic need and worthwhile investment, many credit and savings societies in Kenya have facilitated the purchasing of plots of land for their members.  By offering friendly payment terms, the SACCOs have made it possible for ordinary members to own parcels of land for the construction of residential homes. Unfortunately, insufficient funds, and inability to qualify for long term loans and mortgages, have rendered most of the members incapable of developing the plots to realise their dreams of owning their own homes. It is against this background that we conceptualised the KUSCCO Housing Fund, way back in 1996.

Objectives

Our housing fund is based on the universal principle that shelter is a fundamental human need. Driven by this perception and the need to offer financial solutions to SACCOs in Kenya, we mobilise funds from the savings we receive to enable credit and savings societies in Kenya and their members construct and fund housing projects. No mortgage scheme can match our fund, as we offer the most competitive rates for SACCOs in Kenya.

The KUSCCO Housing Fund aims to:

• Mobilise funds to construct houses for SACCOs and their members in Kenya
• Offer an unbeatable mortgage scheme to savings and credit societies in Kenya and facilitate the purchase of residential houses in urban areas

The housing fund has two main products:

• KUSCCO Home Loan
• KUSCCO House Master Loan

KUSCCO Home Loan

The KUSCCO Home Loan is targeted at individuals who wish to buy or construct their dream homes. To qualify, the SACCO members need to:

• Pay a registration fee of Ksh 1,500
• Save a minimum of Ksh 2,000 monthly

Qualifying for the KUSCCO Home Loan

All SACCO members can qualify for the KUSCCO Home Loan. Interested applicants will be required to get letters of introduction from their respective SACCOs. The general terms and benefits of the KUSSCO Home Loan are as below:

• Applicants must have continuously saved for at least 6 months with the KUSCCO Housing Fund;
• The fund will advance loans up to 5 times the amount of applicants’ savings at the time of application;
• The fund will advance up to Ksh 7million and a minimum of Ksh 450,000;
• Loans are repayable for up to a period of 15 years;

Security and terms for the loans

The housing fund loan will be secured by a number of collateral, including:

• Members’ savings with the KUSCCO Housing Fund;
• Title deeds of land being developed or houses being bought;
• KUSCCO will have the first legal charge of the property during the period of loan repayment;

KUSCCO House Master Loan

The KUSCCO House Master Loan is specifically tailored for SACCOs in Kenya to fund property developments such as the construction of houses and offices.
The terms and benefits of this loan scheme are:

• The SACCOs should pay a membership fee of Ksh  5,000;
• Interested SACCOs must have a minimum monthly savings of Ksh 50,000 towards the house master loan fund;
• Loans advanced to the SACCOs will be up to 3 times the amount of their savings in the scheme;
• Interest on the loans will be charged at an annual rate of 15 per cent on a reducing balance basis;
• Savings in the House Master Loan scheme will earn favourable interest rates;
• The KUSCCO House Master Loan can advance loans of up to Ksh 30 million;
• SACCOs can pay the loans for up to a period of 5 years.