Loans or credit, is one of the services that a financial industry that carries on the business of accepting deposits offers to its customers, and in case of UFF SACCO, its members. From the common pool of savings generated collectively, members have a right but also an option to access loans.
Loan Products to UFFSACCO members.
UFF Quick Loan Terms and Conditions
Loan Size
Quick loans are limited to your basic savings amount and require guarantee savings from two additional members
Interest
Interest on emergency loans shall attract 13% per annum on reducing balance.
Repayment Period
Quick loans shall not exceed 3 months from the date of obtaining the loan. Repayments are recovered on a monthly basis using salary deductions by Directorate of Finance of UPDF.
Requirements
To be eligible for a UFF Quick Loan, a member must:
1. Have been a member for a minimum of 6 months.
2. Complete a UFF Loan Application Form (available on UFF preprinted forms at the UFF office).
3. Provide:
- Passport photograph.
- Bank Account Statement showing monthly salary and bank loan deductions (if any).
- Letter of Authority issued by UFF on a preprinted form.
4. Have at least 25% of shares and savings for the loan amount applied for.
Note:
- UFF reserves the right to review and update these terms and conditions.
- Members are advised to carefully read and understand the terms before applying for a loan.
Development Loans
Loan Products:
1. Nyumba Loan (Shelter/Home Loan)
2. Asset Financing Loans (Acquisition of Assets)
3. Biashara Loan (Trade & Commerce)
4. Agriculture Loans (Farming)
Loan Details:
- Loan Size: Ush 200,000 to Ush 2,000,000
- Interest Rate: 13% per annum on reducing balance (except Agriculture Loan, also 13% p.a.)
- Repayment Period:
- Nyumba and Asset Financing Loans: up to 48 months
- Biashara Loan: up to 24 months
- Agriculture Loan: up to 36 months
Eligibility Requirements:
1. Membership duration: at least 12 months
2. Two UFFSACCO member guarantors
3. Maximum monthly loan repayment: 40% of salary
4. Recommendation from UNIT PAC
5. 25% of shares and savings for the loan amount applied
6. Minimum savings balance: Ush 10,000 (cannot withdraw below this amount)