What is Masomo Loan, and how does it support students going to Australia for higher education?
The Masomo loan has been formulated to assist eligible students to pay for their tuition fees to education providers both local and domiciled overseas. This loan is focused on assisting Kenyan students to access quality education that will see them get better employment opportunities upon completion of their educational pursuit.
Who is eligible to apply for a Masomo Loan?
Kenyan citizens that have attained the age of 18 and above and have completed their high school education in Kenya and have scored a minimum of D in their studies. They must also have a valid offer letter from their education provider and meet ALL academic entry requirements for their selected course. Additionally, their parents’ guardians MUST be active members of Magister Sacco
What expenses does the Masomo Loan cover for students studying abroad?
The Masomo loan will cover the following expenses on behalf of their student;
- Tuition fees
- Medical cover
- Airline tickets
- Accommodation and living expenses
Keep in mind that these expenses will be paid as per invoice provided and also as per the loan limit eligibility of the students’ guardian or parent
How much funding can a student receive through the Masomo Loan program?
The amount of funding a student can access depends on two factors;
- The savings amount in the guardian/ parents account at the time of borrowing the loan- this is three times the amount saved e.g., if the account hold KES100,000, then the student will be eligible for KES300,000 loan
- The ability of the account holder to guarantee the loan through use of guarantors. This means that if a parent wishes to get a loan of KES300,000 and ha 100,000 in his account, then he must look for other members to guarantee his loan and the guarantors must have at least KES200,000 in their savings to guarantee the loan applied for. In the absence of guarantors, then the parent MUST provide collateral in terms of log books, title deed and chattels mortgage. The cost of valuing and transferring ownership will be met by the member directly.
What are the interest rates and repayment terms for Masomo Loans?
The Masomo loan attracts a 1% interest rate per month (12% annual interest) on a reducing balance. The loan period varies from 12 months to 24 months with the standard loan period being 18 months.
Are there any specific conditions for maintaining eligibility for the Masomo Loan?
Yes, a member must be active and save regularly. This translates to KES2,000 per month before and also after borrowing the loan. The member must also make loan repayments to avoid losing any collaterals and guarantors deposits.
How can students apply for a Masomo Loan, and what is the application process like?
To apply for the Masomo loan, you must first register to become a member. Please click on the link https://forms.zohopublic.com/secretary18/form/Saccomembershipapplicationform/formperma/Nd5_tJ9ss-YdGBmJ2WCWYI495u3mPcDVObu0pnUAV6I provided to register to be a member. The following charges apply;
- KES5,000 (non-refundable)-registration fees
- KES 10,000 (refundable)- share capital
- KES 2,000 (refundable) – monthly contribution
After becoming a member, you are expected to have a minimum of Kes 2,000 regularly for at least 6 months before becoming eligible to borrow a loan. To brow a loan, please click on the link below to apply for the Masomo loan.