Magister Sacco Membership Requirements, Loans, Customer Care Contacts, Savings products

Below are products by Magister Sacco:

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;

1. Tuition fees
2. Medical cover
3. Airline tickets
4. 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;

1. 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
2. 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;

1. KES5,000 (non-refundable)-registration fees
2. KES 10,000 (refundable)- share capital
3. 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.

This is compulsory to all Sacco members. Active membership is maintained by consistent monthly contribution of not less than the minimum deposits, in conformation with by-laws and Cooperative principles

1. Savings should be made regularly, usually monthly by 5^th of each succeeding month.
2. Magister Sacco minimum monthly saving is KES 2,000/=, or any other amount revised from time to time. However, there are loan products that dictates higher minimum savings (Deposits).
3. Additional savings can be provided at any given time of the month per members discretion.
4. A member can transfer membership from another sacco without penalty.
5. Deposits cannot be withdrawn, either partially or in full, unless the member resigns from the Society.
6. Deposits forms the basis of member’s loan entitlement. A multiplier effect on a member deposits is dependent on the loan product and used to determines the amount of loan that a member can be advanced for each product.
7. Currently, the entitlement is three-times deposits subject to review from time to time or as specified by TORS of the loan product.
8. Deposits of active members can be used as loan guarantee for self or others.
9. Deposits committed for loan guarantee cannot be claimed by the member, until freed from guarantor obligations.
10. Guaranteed deposits are considered held in trust by the SACCO while the loans are running.
11. Active deposits are eligible for any annual interest that shall be declared by the SACCO as surpluses for each financial year. The SACCO holds the discretion to deny annual interest on dormant members.
12. After the AGM resolution on distribution of surpluses is passed, interest on deposits earned can either be paid out directly to the member, used to reduce members loan or ploughed back as savings per members discretion

This product has been developed for the spouses of principle members. And the spouse is classified as a member outside the common bond of the original member.

1. Savings should be made regularly/consistently, usually monthly, not later than 10^th of the following month.
2. Minimum monthly saving is KES 2,000/=, subject to periodical review.
3. Additional savings can be provided at any given time of the month
4. Deposits cannot be withdrawn in partial or in full, unless the member resigns from the Society
5. Deposits is the basis of member’s loan entitlement.
6. Deposits committed for loan guarantee cannot be claimed by the member, until freed from guarantor obligations.
7. Guaranteed deposits are considered held in trust by the SACCO while the loans are running.
8. Active deposits are eligible for any annual interest that shall be declared by the SACCO as surpluses for each financial year. The SACCO holds the discretion to deny annual interest on dormant members.
9. Interest earned can be paid to the member in cash or re-invested to this or any other savings products as resolved by the members in an AGM.

For loaning purposes, savings/deposits in spouse accounts will differ in treatment from savings/deposits held in normal member account as detailed below:

• The original member who is a spouse to the member will be the 1st guarantor to any of his/her loan applied.
• The total deposits of the other guarantors (excluding the spouse member) plus those of the loan applicant should be enough to cover the loan applied. However, in case of default the deposits of the 1st guarantor shall be used to offset the net default after the defaulter’s deposits before the other guarantors can be attached.
• Amounts committed in guarantor-ship by a spouse member to a member outside common bond shall not be available to guarantee other loans in Magister but can be used for loan eligibility.

Members with liquid cash which they do not intend to use in the near future or have money for a long term project are encouraged to fix it in this account to earn an attractive interest instead of keeping it idle.

• Minimum interest earning deposit is KES 20,000 for 6 months.
• Negotiable and attractive interest rates.
• No ledger fees
• May be used as security against loans

This product has been developed for the children of principle members

1. Savings should be made regularly/consistently, usually monthly, not later than 10^th of the following month
2. Minimum monthly saving is at least 50% of the stipulated principle member’s minimu
3. Additional savings can be provided at any given time of the month
4. Deposits can only be transferred in full and not in part to the principle member only. Transfer can only occur upon full closure of the Minor’s account or upon resignation of the Principle member from the Sacco.
5. Rejoining and activation fees are applicable when rejoining and re-activating the Minor accounts as respectively.
6. Deposits are held in trust by the principle member at all times.
7. These deposits shall be considered as the principle member’s deposits, for purposes of calculating loan entitlement
8. These deposits can be used for loan security by the principle member
9. Deposits are aggregated to those of the principle member when calculating interests
10. The SACCO shall send a birthday message through existing technologies or any other appreciation token that is allowable by the Sacco budget to the child member annually.

This product has been developed to assist members save for a holiday outing

1. Savings should be made regularly, usually monthly, not later than 10th of the following month
2. Minimum monthly saving is KES 1,000/=, Subject to periodical review.
3. Additional savings can be provided at any other given time of the month
4. The member can opt to withdraw whole or part of the savings – a maximum of two (2) times during any calendar year
5. Minimum saving duration is four (4) calendar months
6. These savings cannot be used for loan guarantee to self or others
7. The SACCO shall have charge over such savings in the event of loan defaults by member or those who have been guaranteed by the member
8. These savings are eligible for a monthly interest, at 4% pa or a rate to be determined from time to time
9. These savings are not eligible for any annual interest that shall be declared by the SACCO as surplus at the end of each financial year.

Masomo Loans

Masomo Loan – Empowering Overseas Educational Aspirations

Magister Sacco proudly presents the Masomo Loan, a specialized financial product designed exclusively for education financing. Whether you’re an individual pursuing overseas higher education or a group with collective educational goals, Masomo Loan offers tailored solutions to meet your unique needs.

Individual Masomo Loan

Choose our individual Masomo Loan for personalized financial support on your educational journey. Magister Sacco’s individual Masomo Loan ensures flexibility in terms and competitive rates, helping you achieve your educational aspirations with ease.

Group Masomo Loan

For communities, educational institutions, or study groups with shared educational visions, Magister Sacco provides the Group Masomo Loan. Enjoy the benefits of collaborative financing, making education accessible to a wider audience.

Emergency Loans

1. This is a Type 2 loan.
2. Emergency loans are intended for any unforeseen circumstances.
3. Interest rate shall be 1 % per month on reducing balance.
4. Repayment period up to a maximum of 6 months.
5. A member qualifies for only one emergency loan at any given time.
6. The loan is disbursed within 24-hours.
7. This loan can be refinanced.

Normal Loan

1. This is a Type 1 loan.
2. This in intended for any project.
3. Interest rate is 1% per month on reducing balance.
4. A member qualifies for only one normal loan at any given time.
5. Repayment period is up to a maximum of 2 years( 24 months).
6. This loan can be refinanced to Mavuno, premium loan, and Super Saver if repayable for more than 36 months, upto 48 months.
7. A member can qualify for other Type 2 loans while still servicing this loan.

Magister Sacco

Postal Address: P.O Box 879 – 30300, Kapsabet

Location: Daima Towers (MUPS) , Ground Floor, Opposite Harambee Sacco off Uganda Road, Eldoret Kenya

Telephone: +254 759 752268 / +254 720 325832

Email: info@magistersacco.org