Loans are granted to members for productive and provident purposes. Members who have saved for Six (6) months or more with KAMCCU may be granted Loans within or above savings. The maximum loans that can be granted to a member is twice member's Savings. Maximum loan repayment period is Three (3) years.
Purpose of loans Include:
1. Provident
Food, school fees, weddings, funerals, housing, transport, others.
2. Productive
a. Agriculture
Fertilizer, livestock/poultry, farming equipment, seeds, others
b. Business
Tailoring, maize mill, business capital, liquidity support, others
Members can obtain Loan application forms from the office, complete and return same with a valid ID card (Voter's ID, Drivers Licence, National Identification card, Passport). Loans above member's savings must be vetted by the Loans Committee, which meets weekly to consider Loans and approve or disapprove or defer. Members applying for Loans from Seven Thousand Ghana Cedis (GHS 7,000.00) and above must meet the Committee personally for further verification before approval is given.
Loans are insured by the borrower with the Credit Union against the risk of Death and Permanent disability under the Credit Unions Loan Protection Plan (LPP). The entire loan is covered over the repayment period. Whatever that has been re-paid by the borrower at the time of the risk becomes a benefit to the member in time of Permanent disability or to the next of kin after death of a member.
Interest charged on Loans is 2.5% per month reducing balance method which makes up to 19.5% per annum or 1% per month for loans within savings. Example, when a member takes GHS 1,000.00 he/she will pay an interest of GHS 195.00 over a repayment period of 12 months to be repaid monthly.
1. Loans Within Savings
Loans With-In Savings is a facility requested by a member when the amount applied for falls below the members’ available savings balance.
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2. Long-Term Loans
Long-Term Loans are standard credit facilities granted to members for personal needs, or emergency purposes. It is a facility requested by a member when the amount applied for exceeds the members’ available savings balance.
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3. Special Purpose Loans
The Special Purpose Loans is designed to reward highly disciplined and creditworthy members of the Credit Union. It is facility granted to support SME as well as large commercial businesses. This facility supports members who have demonstrated exceptional repayment behavior and require access to higher loan amounts at a competitive interest rate.
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4. Commercial Vehicle Loan
A commercial vehicle loan is a credit facility provided to finance the acquisition of vehicles intended for transport services or other income-generating commercial activities, with the vehicle serving as collateral for the loan.
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5. KAM Salary Loan – DS
The KAM Salary Loan – DS is a credit facility available to salaried employees, allowing them to obtain financing based on their regular monthly income. The loan is typically unsecured and is repaid through direct deductions at source from the borrower’s salary. Salaried employees, including teachers in well-established private schools, staff of medium-scale enterprises, and employees of blue-chip companies, who require short-term or long-term financial assistance.
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6. Rapid Salary Loan
The Rapid Salary Loan is a financial product designed for salaried employees to obtain short-term financing between pay cycles, with fast disbursement timelines. This is to provide quick and convenient access to short-term financing to meet urgent financial needs, to strengthen member loyalty and retention by addressing immediate cash flow challenges promptly.
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7. Group Micro Loan
A Group micro loan is a financial product designed for low-income entrepreneurs and small business owners in who lack traditional collateral but instead of physical assets, these loans use "social collateral’ thus collective guarantee of a group to secure credit. They are grouped in a small group where each person is "jointly and severally" liable.
Target Market:
Well organized associations or groups of the following:
a. Market women and retail traders.
b. Small-scale farmers and agricultural cooperatives.c. Micro-entrepreneurs in tailoring, catering, or handicrafts.
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