Development Loan
Development Loan
Benefits of Development Loans
Development loans can usually be arranged very quickly, certainly faster than you would expect with a mortgage application.
Interest rates for development loans are not usually exceptionally high.
Only the disbursed amount incurs a penalty.
Apart from any deposit that might be required, you don’t pay anything upfront. This could give you cash to use for other purposes, or simply improve your general cash flow position.
Features
- Have maintained an account with the Sacco a minimum of six (6) months.
- The maximum amount of loan granted is 3 times your deposits.
- Provide security. Security options include title deed, or log book
- The loan term does not exceed 60 months.
- The interest rate does not exceed 1% monthly on reducing balance.
Requirements
- You need to be a Sacco member and a consistent saver.
- Minimum waiting period of six months to be eligible for this loan
- Attach ID copies of both the applicant and the guarantors.
- Pin certificate copy
- Certified Bank statements for the last six (6) months for registered business
- Have a duly completed loan application form.
- Payslips for the last three (3) months certified by the employer.
- Authority to use Bank statements by the other Directors/ partners.
- Self guaranteed loans to provide either payslip, Mpesa statements or bank statements
- Self guaranteed loans qualify 80% of the deposits
- Declaration of profit and loss account for one year.
Development loans FAQs
You can use it to fund a new residential housing project, workspace development, or regeneration initiative.
Property development finance is a short-term loan for residential property developments, such as construction projects, and is usually advanced as a loan towards land purchase and a loan in stage payments for development costs in converting a property into flats.