Special Loan Products

Aligned with Caritas Nairobi’s mission of socio-economic empowerment, these affirmative financial products remove credit barriers for vulnerable demographics like the youth, elderly, and people with disabilities. Featuring subsidized interest rates and specialized approvals, they drive inclusivity and sustainable economic participation.

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Loan Application Form

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Youth Loan Product

This product provides young entrepreneurs and innovators with the capital needed to start or expand small ventures and achieve self-reliance.

Features

Eligible members must be aged between 18 and 35 years.
The interest rate for this product shall be capped at a preferential rate of 0.8% per month on a reducing balance.

Youth Loan Product

This product is tailored to provide financial dignity and security to elderly members, allowing them to manage their financial needs, support family needs, and maintain small-scale livelihood activities in retirement.

Eligible members must be aged 65 years or above.
The interest rate for this product shall be capped at a preferential rate of 0.8% per month.

The loan must be fully guaranteed by the member’s savings or other qualified guarantors within the group.
The loan approval process must include formal approval from Caritas Nairobi.

People Living with Disabilities (PLWD) Loan Product

This product aims to provide equitable access to finance for members with disabilities, enabling them to acquire assistive technologies or invest in income-generating activities that promote economic independence.

The loan approval process must include formal approval from Caritas Nairobi.
The loan must be fully guaranteed by the member’s savings or other assets

Eligible members must be persons living with different abilities (as verified by relevant medical or government documentation).
The interest rate for this product shall be capped at a preferential rate of 0.8% per month.

Mode of Payments

Loan Application Procedure

STEP1:PRE-LOAN APPLICATION INTERVIEW

The credit officer shall interview the loan applicant to determine the loan purpose, viability, and repayment ability. The credit officer shall also inform the applicant of the existing terms and conditions.

STEP2:LOAN APPLICATION

All loan applications are made on serialized loan forms as prescribed by Caritas Nairobi. Loan applications must be made in person by the applicant or via approved channels where indemnity exists.

Loan applications shall be considered in the order in which they are received (i.e., first in, first out), provided that whenever there are more applications for loans than the available funds, preference shall be given in the following order: –

(a) Members who have applied for emergency loans.

(b) First-time borrowers.

STEP3:LOAN APPRAISAL

(a) A credit officer shall only fill this section with verified information from the group’s records.

(b) No calculations or comments shall be written on the loan form.

(d) The loan form shall be signed by the credit officer and forwarded to the executive committee for approval.

(e) The credit officer shall refer all declined loan applications to the executive committee for further review.

(f) The credit officer shall verify the guarantor’s consent to guarantee the applied loan.

This section outlines the functional requirements for a comprehensive credit scoring system designed to assess the creditworthiness of members.

(a) Provides a comprehensive evaluation of an individual’s financial credibility

(b) Utilizes multiple parameters to assess credit risk

STEP4:LOAN APPROVAL

(a) The executive committee shall only fill this section with verified information from the group’s records.

(b) The executive committee must indicate the reference to the minutes before signing.

(d) The loan form shall be signed by at least two members of the executive committee.

STEP5:LOAN DISBURSAL

Loans shall be disbursed through cheques and/or electronic money transfers. Disbursement shall follow approval on the loan form, and in the accounting system, and relevant vouchers shall be provided and recorded. All borrowers must be furnished with a loan repayment schedule at the time of disbursal.

STEP6:DISBURSEMENT MANAGEMENT

Loan repayment shall commence not later than one month following disbursement of the loan. Repayments thereafter shall be made on or before the stipulated date as provided for in the loan agreement form and the repayment schedule.
Repayments shall be remitted through a cash deposit to the group’s account, banker’s cheque, direct transfers, or electronic money transfer.
A member can authorize their surplus distribution to be used for loan repayment.
The loan repayment period shall be determined by the management committee according to the loan repayment schedule provided in the guideline, but in all cases shall not exceed 96 months. The repayment schedule shall clearly show amounts payable relating to the principal loan and interest.
A member may repay part or the whole of their loan and interest before its maturity. It is the responsibility of the management to ensure that all loans disbursed are fully recovered.
The following shall be the priority of apportioning members’ deposits:
i) Loan interest and penalties shall be receipted first.
ii) Minimum savings contribution shall be receipted second.
iii) The remaining amount shall be used to repay the loan principal.