Frequently Asked Questions
What is the Masomo Loan, and how does it support students going abroad for higher education?
The Masomo Loan has been formulated to help eligible students pay tuition fees to education providers both in Kenya and overseas. It focuses on helping Kenyan students access quality education that will lead to better employment opportunities when they complete their studies.
Who is eligible to apply for a Masomo Loan?
Kenyan citizens aged 18 and above who have completed their high school education in Kenya with a minimum grade of D. 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 or guardians must be active members of Magister Sacco.
What expenses does the Masomo Loan cover for students studying abroad?
The Masomo Loan covers the following expenses on behalf of the student:
- Tuition fees
- Medical cover
- Airline tickets
- Accommodation and living expenses
These expenses are paid as per the invoice provided and within the loan limit of the student’s parent or guardian.
How much funding can a student receive through the Masomo Loan?
The amount depends on two factors:
- The savings in the parent’s or guardian’s account at the time of borrowing. The limit is three times the amount saved: for example, if the account holds KES 100,000, the student is eligible for a KES 300,000 loan.
- The account holder’s ability to secure the loan with guarantors. If a parent wants a loan of KES 300,000 and has KES 100,000 in their account, they must find other members to guarantee the loan, and the guarantors must have at least KES 200,000 in savings between them. Without guarantors, the parent must provide collateral such as log books, title deeds or a chattels mortgage. The cost of valuation and transfer of ownership is met by the member.
What are the interest rates and repayment terms for Masomo Loans?
The Masomo Loan attracts interest of 1% per month (12% per year) on a reducing balance. The loan period ranges from 12 to 24 months, with a standard period of 18 months.
Are there conditions for staying eligible for the Masomo Loan?
Yes. A member must be active and save regularly – at least KES 2,000 per month, both before and after borrowing. The member must also keep up loan repayments to avoid losing any collateral and guarantors’ deposits.
How do I apply for a Masomo Loan?
First, register to become a member. The following charges apply:
- KES 5,000 registration fee (non-refundable)
- KES 10,000 share capital (refundable)
- KES 2,000 monthly contribution (refundable)
After becoming a member, you need to save a minimum of KES 2,000 regularly for at least six months before you are eligible to borrow. You can then apply for the Masomo Loan online.