- Minimum monthly saving
- KES 2,000
- Due by
- 5th of the following month
- Loan entitlement
- 3× deposits
This is compulsory to all Sacco members. Active membership is maintained by consistent monthly contribution of not less than the minimum deposits, in conformity with the by-laws and cooperative principles.
- Savings should be made regularly, usually monthly, by the 5th of each succeeding month.
- Magister Sacco’s minimum monthly saving is KES 2,000, or any other amount revised from time to time. However, some loan products require higher minimum savings (deposits).
- Additional savings can be made at any time of the month at the member’s discretion.
- A member can transfer membership from another Sacco without penalty.
- Deposits cannot be withdrawn, either partially or in full, unless the member resigns from the Society.
- Deposits form the basis of a member’s loan entitlement. The multiplier applied to a member’s deposits depends on the loan product and determines the amount of loan that a member can be advanced for each product.
- Currently, the entitlement is three times deposits, subject to review from time to time or as specified by the terms of reference of the loan product.
- Deposits of active members can be used as loan guarantee for self or others.
- Deposits committed for loan guarantee cannot be claimed by the member until freed from guarantor obligations.
- Guaranteed deposits are considered held in trust by the Sacco while the loans are running.
- Active deposits are eligible for any annual interest declared by the Sacco from surpluses for each financial year. The Sacco holds the discretion to deny annual interest to dormant members.
- After the AGM resolution on distribution of surpluses is passed, interest earned on deposits can be paid out directly to the member, used to reduce the member’s loan, or ploughed back as savings, at the member’s discretion.