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Loan Securities

Loan Securities

a. Guarantee up to 6 Loans.

Effective 1st July, 2016, members can now guarantee seven loans plus his/her application, raising the slots that one can guarantee from three to six.


b. Use of MHCL Plots to Secure Loans

In addition to Mhasibu Housing Completion Certificates and Titled Plots, the board has approved the use of plots and shares acquired through Mhasibu Investment Company Ltd (MICL) as part of loan securities. The terms and conditions applicable to securities in Mhasibu Housing Company Ltd will apply to the MICL securities.


c. Revaluation of Motor Vehicle Value

With the increased costs of motor vehicle disposal in the event of default and loss of the Motor Vehicle itself, the Sacco has experienced difficulties recovering loans secured using motor vehicle logbooks.
In order to minimize the risk inherent in these securities, we have varied the terms applicable to require that;
  1. The Motor vehicle should be less than 15 years, from year of manufacture
  2. All motor vehicles will have to be fitted with a car tracking device and the credentials shared with the Sacco.
  3. The current value of the motor vehicle will be discounted at 50%
  4. The costs of fitting the tracking device and attendant registration costs will be borne by the applicant.
  5. Include; Original log book, Valuation report, Filled Transfer form, Certificte of insurance

d. Other Loan Securities remain as;

  1. Unit Trust Deposits (100%)
  2. Money Market Investments (100%)
  3. Life Insurance Policies (Surrender Value)
  4. Stocks listed in Nairobi Securities Exchange (50% of Valuation)
  5. Vehicles Asset Financing loan (75% or 90% of car valuation for used and new cars respectively)