In this article, we will have a look at the products offered by Tembo Sacco. It is a deposit-taking Sacco that has been in existence since 1972.
The Sacco was initially established to serve East Africa Breweries Limited employees. Today, the membership is open to all sectors. Since its establishment, the Sacco has seen tremendous financial growth. Currently, it has an asset base of over 4.91 billion serving more than 4,000 members.
List Of Tembo Sacco Products
a) BOSA Products
Back Office Savings activities (BOSA) enable members to contribute towards savings products and at the same time access credit facilities.
Share Capital
It represents member’s ownership of the SACCO. This product is non withdrawable, but transferrable to another member of the Sacco if one decides to leave.
The minimum share capital per member is Ksh.20, 000. (1000 shares of ksh.20 each). Tembo Sacco has lucrative returns for this product- the rate averages at 20 per cent.
Sacco Deposits Contribution
Deposits represent money that a member can be refunded back upon placing prior notice when they decide to leave the Sacco.
The minimum monthly contribution is Ksh.1000. They act as multipliers when a member is applying for a loan and can be used to guarantee other members loans. Deposits are refundable to a member upon giving a 60 days prior notice, as long as they have not been used to guarantee a loan.
Tembo Sacco deposits attract an annual interest of up to 11.5%.
BOSA Special Savings
This product targets long-term plans such as holidays, construction, school fees, weddings and special projects. Its minimum monthly contribution is Ksh.500.
It earns 10% interest payable semiannually i.e. July and January. BOSA Special withdrawal can be done once a year upon giving a 30 days prior notice.
Benevolent Fund
This is an insurance policy for members that covers the member and immediate family members against death. One must be a member with the mandatory Share Capital Ksh. 20,000 to access this product.
BOSA Credit Products
Loan Products
a) Long-term Loans
Jumbo Plus Loan
- Available only to the employees who are employed on permanent terms and whose salaries are channelled through Tembo
- Multiplier is 5 times Savings
- The interest rate is 1.25% P.M
- Repayment period 84 Months (7 Years)
- Top-ups allowed.
- Must be fully guaranteed.
Jumbo Loan
- One can qualify up to 4 times their Sacco
- Repayment period up to 60
- Interest Rate 1.25% per month on a reducing
- Minimum of three guarantors who must fully cover the loan amount
- The loan is insured against death or total disability under loan guard policy
- Top-ups allowed.
Normal Loan
- One can qualify up to 3 times their shares/deposits.
- Repayment period- up to 48 months.
- One must have been a member for 6 months with consistent monthly
- Interest rate 1 % p.m. on a reducing
- All loans must be fully secured by either guarantors or collateral
- The loan is insured against death or permanent disability under loan guard policy
- Top-ups allowed.
B. Medium term
Jisort Loan
- One can qualify for up to Ksh. 500,000
- Repayment period – up to 24 months
- Interest rate 3% Per month (reducing balance)
- Minimum of 3 guarantors who should be members of the Sacco and must cover the whole loan
- Top up allowed subject to applicable
- The loan is insured against death or permanent disability under loan guard
- Loan request are processed same day.
- Disbursements are done through FOSA
Jijenge Loan
- One can qualify Ksh 500,000-1,000,000.
- Repayment period up to 36 months
- Interest rate 1.5% per month on a reducing balance
- Given to members on check-off system
- Minimum of 3 guarantors who should be members of the Sacco and must cover the whole loan
- The loan is insured against death or permanent disability under the loan guard policy
- Top up is allowed once with a processing fee of 5% on the loan amount applied
- Loan requests are processed instantly with a processing fee of Ksh 1000
Car Loan
- One can qualify for up to Ksh 2,000,000
- Repayment period up to 36 months
- Interest rate 1.5% per month on a reducing balance
- Minimum of 3 guarantors who should be members of the Sacco and must cover the whole loan
- The loan is insured against death or permanent disability under loan guard policy
Hisa loans
- This a product based facility enabling members to acquire corporate center shares
- Repayment period – 36 months
- Interest rate – 1.25% per month or 15% Per annum (reducing balance)
- No Guarantors required
C. Short term Loans
Jienjoy Loan
- Maximum that one can qualify for at any one time is Ksh 100,000
- Top ups are allowed, a one-off top-up fee of 5% is charged on the loan balance
- Interest rate 12% per month on a reducing balance
- Repayment period up to 1 month
- Self-guarantor ship
- The loan is insured against death or permanent disability under loan guard policy
- Disbursements are done through FOSA
- Loan requests are processed the same day
Emergency Loan
- Maximum that one can qualify for at any one time is Ksh 200,000
- Interest rate 1% per month on a reducing balance
- No top-ups allowed for this loan
- Repayment period up to 12
- Minimum of 3 guarantors who should be members of the Sacco and must cover the whole
- The loan is insured against death or permanent disability under the loan guard policy
- Disbursement are done through FOSA
- Loan requests are processed the same day
Express Loan
- Maximum that one can qualify for at any one time is Ksh 200,000
- Top ups are allowed, a one-off top-up fee of 5% is charged on the loan balance
- Interest rate 5% per month on a reducing balance
- Repayment period up to 12 months
- Minimum of 3 guarantors who should be members of the Sacco and must cover the whole
- The loan is insured against death or permanent disability under loan guard policy
- Disbursement are done through FOSA
- Loan requests are processed same day, processing fee of Ksh 500
- Available to members less than 6 months old as long as there is the ability to pay
M-Tembo Loan
- This loan is instant and is applied using the mobile platform
- One must be registered on the M-Tembo platform
- Maximum amount depends on the member’s credit score.
- Interest rate 6% p.m.
- Repayment 1 month i.e. 30 days
- No guarantors
- Penalty on default is 6% of the outstanding
- The defaulted loan is recovered from Deposits and the applicant is blocked from accessing
Salary Advance
- Available to salaried people whose salaries are channelled through Tembo Sacco
- One qualifies up to a maximum of 50% of the Net salary
- Interest rate is 2% p.m
- Deducted Once when salary is received
- One can only access it from the 15th day of the month
Front Office Service Activity (FOSA) Products
1.FOSA Savings Account
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- This account is available to any member who saves with Tembo Sacco in the Back Office
- One can deposit and withdraw anytime
- Minimum account balance is Ksh 1,000
- This account can be linked with Mobile and ATM services
Salary Account
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- This account is for members whose salary is channelled through the Sacco
- The minimum account balance is 100
- This account can be linked with Mobile and ATM services
- One can deposit and withdraw anytime
Hekima Account
Hekima is a savings account which one can be able to withdraw to a limit of 3 times a year. It earns interest of 10% p.a. on a prorated basis and it is subjected to the market. The minimum account balance is Ksh 1,000.
Fixed Deposit Account.
- Minimum Fixed Deposit amount is 50,000.
- Its interest rate is determined by the market and banks rate
- Interest rates can be negotiated by the account holder
Tembo Sacco Banking Facilities
- Standing orders
- Cheque clearing
- Bankers cheques
- ATM Cards
- EFTs
- M-Pesa services
- Paybill service
Tembo Sacco Branches
Tembo Sacco operates from the head office located at Tembo Plaza along Garden Estate Road in Nairobi.
Contacts
Phone: +254 722 99 24 69, 020 26 03 334
Location: info@tembosacco.co.ke
