Madfa Sacco

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MADFA SACCO Loan products

Agriculture financing

Generic loan products

Lima (agriculture) production loan

The Lima loan product is intended to facilitate our members to increase agriculture production and productivity. Before accessing the loan, members undergo training in agronomy to enable them appreciate modern farming practices and strategies to increase productivity per unit acreage. The loan product has unique benefits including a grace period equal to the gestation period of the enterprise financed, fixed interest rates, supportive functions (training in agronomy, financial literacy, and market linkages), group guarantorship as an alternative collateral.

Tooza Akatale (quasi warehouse receipt system).

Upon realizing that our members get low prices when they sell their produce immediately after harvest, MADFA SACCO developed Tooza Akatale loan product to enable members meet immediate financial needs as they wait for fair prices.

 

Other loan products include:

Animal Fattening loans

This loan product was introduced to enable farmers trading in livestock to procure animals and/or birds at low prices and fatten them to make a profit. The loan product benefits include grace period of up to 12 months; fixed interest rates; supportive functions such as training in animal husbandry and financial literacy; and group guarantorship as alternative collateral.

Commercial loans

Commercial Loans

This loan product is typically a debt-based funding arrangement between an individual business owner and MADFA SACCO. It is used to fund major capital expenditures and/or cover working capital needs that the company or individuals may otherwise be unable to afford.

 

Institutional loans

Industrial Loans

This loan product facilitates secondary level farmer associations (SFGAs) or marketing cooperatives to acquire assets that will enable them offer services to their members. These may include but not limited to purchase of maize shellers, tractors, maize milling machines, irrigation equipments, etc. The facility is also extended to schools, churches, and other business entities to finance capital expenditures and/or cover working capital needs.

Asset acquisition loans

School fees loans

Emergency loans

This loan is extended to programmed savings account holders to facilitate them realize their dreams – purchase of land, setting up irrigation systems, buying iron sheets, etc. A member is required to have saved at least 30% of the asset value on programmed savings account and the society finances the difference. The asset financed acts as collateral security.  

This product is extended to members operating school fees savings accounts with the society. The parent is expected to make regular deposits on the account towards payment of school fees. At the beginning of the term or semester, a short term credit facility is extended to the parent to pay school fees in case the funds on the account are not sufficient. The loan period is three or six months depending on whether payment is made per term or per semester.

This is an overdraft facility available to outstanding savers and collection account holders to meet emergent cash flow needs or address problems such as sickness, death, accident, etc. The loan is approved in 2 hours and payable within 30 days.